Section 54 of Income Tax Act

Sec 54 nowhere put any condition on number of houses owned

this condition is only in sec54F not in sec54

so in present case assesse is eligible to get deduction.

Agree with Madhur..

Originally posted by : madhur gupta
	Sec 54 nowhere put any condition on number of houses owned this condition is only in sec54F not in sec54 so in present case assesse is eligible to get deduction.

 agree with madhur there is no limit of house property in u/s 54

Originally posted by : Prateek Nagpal
	The assessee has three house properties. One of the house property has been sold by the assessee during current financial year resulting in long term capital gains. The assessee is willing to invest the capital gains in another house property. Whether the assessee is eligible to claim deduction u/s 54 of the Income Tax Act 1961 keeping in mind that the assessee has already two house property   Thanks with regards   Prateek Nagpal

Prima facie, yes.

You can claim section 54 benefit....

Pls ensure that the assesee used the house for residential purpose and not for running his business or carrying on profession.

Also to ensure that the property was assessed as income from House property (self occupied or otherwise) in the hands of assessee and not as AOP under section 26.

Originally posted by : madhur gupta
	Sec 54 nowhere put any condition on number of houses owned this condition is only in sec54F not in sec54 so in present case assesse is eligible to get deduction.

agree with this.

I wud further like to add to the question.

Under sec 54, will exemption be available for all the residential properties if we purchase or construct more than one residential property within the time limits specified in the section or the section entitles us to exemption only for one residential property ?

Originally posted by : gaurav salhotra
	I wud further like to add to the question. Under sec 54, will exemption be available for all the residential properties if we purchase or construct more than one residential property within the time limits specified in the section or the section entitles us to exemption only for one residential property ?

Strict view is not to claim such exemptions.

Liberal view can be taken... that the reinvestment need not be in one house property.

The benefit of investing the CG in two houses was allowed in Ananda Basappa's case (Kar, 2009)...

ya can claim exemption u/s 54.  For Gaurav question,  i think so, yes.

As per section 54 of income tax act 1961you will  have to sale the residence house and we can purchase only residence house it doesn't matter that how much house property you have. and long term capital should be arise.

Quantam of Exemption : amount of capital gain which you will invested in the new residence house by selling the old one with in two year after the date of transfer or year befor the transfer or if in contsruction with in three years from transfer

if the amount of caiptal gain is less than or equal to the cost of new house than entire capital gain is exempt

if the amount of capital gain is greater than cost of new house than the whole

amount of investment in new house is allowed as exmpt

Conclusion it doesn't matter in section 54 because there is no any clause regarding

the no. of hose property you hold

it is mention in the section 54F that you should not own more than one rsidence

house at the time of transfer

so that you avail the exemtion under section 54    

there is not any restriction regarding the number of house property that should be owned by the assessee for claiming deduction u/s 54. So if he purchases or construct the house in circumstances as specified u/s54 he shall be eligible for exemption u/s 54.

yes he can claim on resi.  house