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Discussion > Income Tax > Tax queries >

Section 54 of Income Tax Act

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STUDENT


[ Scorecard : 52]
Posted On 09 December 2010 at 13:28 Report Abuse

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


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madhur gupta
student/article


[ Scorecard : 1022]
Posted On 09 December 2010 at 13:57

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.



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Sunali
Learner


[ Scorecard : 1317]
Posted On 09 December 2010 at 13:58

Agree with Madhur..




Raghunath Prasad
WORKING


[ Scorecard : 385]
Posted On 09 December 2010 at 16:40

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




CA Chirag Haraniya
Chartered Accountant


[ Scorecard : 804]
Posted On 09 December 2010 at 17:56

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.



.g.k.
employed


[ Scorecard : 2372]
Posted On 09 December 2010 at 19:37

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.




SABA
CA FINAL


[ Scorecard : 350]
Posted On 09 December 2010 at 20:11

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.




gaurav salhotra
article


[ Scorecard : 33]
Posted On 10 December 2010 at 11:51

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 ?




.g.k.
employed


[ Scorecard : 2372]
Posted On 10 December 2010 at 12:49

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)...




B. Umapathy
student


[ Scorecard : 400]
Posted On 10 December 2010 at 12:50

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



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