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Querist : Anonymous

Querist : Anonymous (Querist)

09 March 2011 Whether exemption u/s 54F can be claimed if assessee purchased residential house property in foreign country. There is only one tribunal judgement which does not allow the same.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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09 March 2011 In providing tax exemptions for the purchase
of new house, the intention of statute to promote housing development in India and to facilitate the assessee in purchasing a residential house, if considered, tribunal's judgement stands in accordance with the statute.
However, in Section 54F , the requirement about the new residential house is such that -its income should be assessed under the head IFHP. (Pl refer S 54F(2)
In case of a resident, income from a house property located outside India is also
taxable under IFHP head.
So, in my view,
1. Where the section does not specifies about the location of house, (in or outside India)- Exemption in respect of new house purchased any where can be claimed.
2. The only criteria as regards to the taxability of its income, is if met by the assessee concerned, exemption should not be denied.

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