Capital gain u/s 54
This query is : Resolved
15 October 2013
The Assessee made Capital Gain of Rs 20,00,000 after selling land.
He Invested the Capital Gain in construction of First Floor House Owned by Father.
will he be eligible for exemption u/s 54?
what will be the case if his father has gifted him the First Floor Roof for Construction?
He Invested the Capital Gain in construction of First Floor House Owned by Father.
will he be eligible for exemption u/s 54?
what will be the case if his father has gifted him the First Floor Roof for Construction?
15 October 2013
In past judiciary has ruled in favor of the assessee in such cases.
However, in past few years, judiciary has approached a much less liberal approach and often disallowed exemption where the new house property is not in the name of the assessee.
Anyways, you can't claim exemption under 54. Since what you have sold is not a residential property, you may claim exemption under 54F wherein you shall be required reinvest the whole of the capital receipt to claim exemption. But as I said before, your claim could be disallowed.
However, in past few years, judiciary has approached a much less liberal approach and often disallowed exemption where the new house property is not in the name of the assessee.
Anyways, you can't claim exemption under 54. Since what you have sold is not a residential property, you may claim exemption under 54F wherein you shall be required reinvest the whole of the capital receipt to claim exemption. But as I said before, your claim could be disallowed.
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