Capital gain

This query is : Resolved

Rahul Chudasama (Querist)
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16 May 2018 The Assessee had a residential ownership flat in Mumbai since past 10 years.
This Flat is sold in the current accounting year. 17-18 .
Long term gain after considering cost inflation index is calculated.
The Assessee has now purchased a new Tenanted place ( Pagdi System)
and has paid the amount out of the Capital Gains by cheque Stamp duty as per Stamp Duty Act is paid
The Document is registered The Agreement with landlord says that this tenanted place is for residential purposes only.
Whether the amount paid for the purchase of the Residential Tenanted Property (Paghdi System) will be eligible for Deduction u/s 54? Your opinion will be highly appreciated.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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16 May 2018 Yes. Reason is -
+ reinvestment in residential property envisaged u/s 54(1) is satisfied through
the 'constructive purchase' referred in the query.
+ has become deemed owner u/s 27(iiib)

Rahul Chudasama

Rahul Chudasama (Querist)
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16 May 2018 Thank you so much sir. may you provide any judgement on the above case that in our favour.

Thanking you

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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16 May 2018 I don't have and not read too.

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