Section 54

In section 54, if ' a'  capital asset is transferred we are entittled to get exemption if we purchase 'a' residential House. suppose a residential house is transferred for Rs. 1 Cr.and 3 residential house is purchased within time limit for Rs.25 lacs each . So,can we get exemtion u/s 54 of Rs. 75 lacs ?

Also if we sell two residential house for rs. 75 lacs each and purchase one residential house of rs. 100 lacs ;can we get exemtion u/s 54 of Rs. 100 lacs ?

There is no restriction in sec 54 to purchase/sale number of house. You can sale 1 and buy more than 1 and vica versa. Even new house needs not to register on own name.

Originally posted by : Deepak Parsai
	There is no restriction in sec 54 to purchase/sale number of house. You can sale 1 and buy more than 1 and vica versa. Even new house needs not to register on own name.

 

refer the link :

http://www.vakilno1.com/bareacts/incometaxact/s54.htm

I AGREE WITH THE REPLY OF DEEPAK AND SIDDHARTH ABOVE....THEY ARE CORRECT...

In section 54 Capital Asset is defined as being "a residential house" . "a" means "any" of the residential house purchased and not "many" of the residential house purchased. so if we buy three residential house of rs. 24 , 25, 30 lacs we would get highest deduction i.e. Rs.30 lacs . So will i be getting total value of three house purchased as exemption u/s 54?

I think there is a big difference between 'A residential house' and 'ONE residential house'.