54f constructed house
This query is : Resolved
17 August 2015
2 crore cap.gain was invested in buying land of rs.2 crore, conscruction of house is barely rs.10 lacs.
its like a farm house.
can we claim full 2 crore u/s. 54f?
regards, ca kunjan, 9222922292, www.CAnaresah.com
its like a farm house.
can we claim full 2 crore u/s. 54f?
regards, ca kunjan, 9222922292, www.CAnaresah.com
17 August 2015
Invites litigation for such type of tax planning.
Amol S Joglekar
(Expert)
17 August 2015
House includes Farm House. Subject to other conditions of 54F, you can claim the deduction
17 August 2015
Amol Ji
The question, as I understood, is whether a small building (a farm house like) surrounded by large extent of vacant land appurtenant qualifies for deduction u/s 54F.
The Madras High court in the case of CIT Vs. M. Kalpagam reported in (1997) 227 ITR 733 has put in certain test criteria to judge such issues. That is why I said it is a vexed question.
The question, as I understood, is whether a small building (a farm house like) surrounded by large extent of vacant land appurtenant qualifies for deduction u/s 54F.
The Madras High court in the case of CIT Vs. M. Kalpagam reported in (1997) 227 ITR 733 has put in certain test criteria to judge such issues. That is why I said it is a vexed question.
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Amol S Joglekar
(Expert)
18 August 2015
You are absolutely right B Chackrapani Warrier. The principles laid down for "residential house" vis a vis "dwelling unit" MUST be followed while determining if farm house is residential house.
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