Aplicability under section 54 & 54f

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HALAI SARFARAZ I. (Querist)
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02 December 2011 is investment in more than one residential property in U/S-54 & 54F against LTCG if yes give specific case law for that.and ans the following..
e.g. 1)if assesses sold other than HP & inccured LTCG of rs.1000000 which he invest in two residential property what applicability U/s-54f
2)if assesses sold HP & inccured LTCG of rs.1100000 which he invest in two residential property what applicability U/s-54

CS, Deepak Pratap Singh

CS, Deepak Pratap Singh (Expert)
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03 December 2011 Dear friend, The capital gain raised due to transfer or sale of any House property will be utilized in purchasing of two or more than two properties. The IT Act, 1961 has not imposed any restriction in number of properties to be purchased.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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04 December 2011 1. 54F:

In this case purchase of 2 Separate Residential Houses one in Building A and another else where or in other building ....
is not allowed.

This is due to restriction imposed by Section 54F ...within one year of purchase of new asset ..the assessee can not purchase another residential house.
Please go through the proviso of Section 54F (1) (a)(ii).

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