Benefit u/s 54

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Hemali Shanghvi (Querist)
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21 August 2011 Hi,

My client owns a land which is leased to him by State Govt. for 99 years. His wife owend a property which she sold this year and is using the proceeds to construct the house on clients land. can she claim tax benefit u/s 54? No where in the act they have mentioned that to construct the house they have to own the land either. Would they have to complete any formalities to claim this tax benefit?

Thanks
Hemali

CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)
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21 August 2011 Yes, you can do it without any problem.

Hemali Shanghvi

Hemali Shanghvi (Querist)
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21 August 2011 Hi Ashwani,

Thanks for the reply! Do I need to ensure any documentation so that I do not have any problems in the future for eg like an agreement or something?

Thanks again!

CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)
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21 August 2011 No major documentation is needed.

If you want then give a license to the wife that i am allowing you to construct on my land.

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Hemali Shanghvi

Hemali Shanghvi (Querist)
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21 August 2011 Great, thanks again!

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