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Section 54 of Income Tax Act


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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student/article


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.


Total thanks : 1 times

 
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Learner


Agree with Madhur..

 
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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

 
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Chartered Accountant


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.

 
Reply   
 
employed


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.

 
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CA FINAL


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.

 
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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 ?

 
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employed


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)...

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

 
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