Capital Gains

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Mohammed Haneef G H (Querist)
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27 October 2010 A Hindu Undivided Family consists of Kartha, wife, a son and daughter has sold their residential and Commercial Complex and Deposited net Capital Gain in a Capital Gains Account in a nationalised Bank. Can the HUF purchase two residential Houses and claim exemption u/s 54 and 54F of the Income TAx Act ?

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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27 October 2010 Yes , for Residential house - Sec 54 ded

for Commercial complex-- sec 54F ded

Mohammed Haneef G H

Mohammed Haneef G H (Querist)
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27 October 2010 If two residential houses are purchased against the Capital Gain ? As per the opinion of the Assessing Officer deduction can be claimed for only one house. Please Clarify with any recent decision of the Court or tribunals

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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27 October 2010 One view :-
Investment in multiple houses aggregate for investments to qualify for exemption under section 54 ."a" residential house should be understood in a sense that building should be of residential nature and should not be understood to indicate a singular number.
CIT Vs. D. Ananda Basppa 309 ITR 329 (Kar).

Another view:-
Where the assessee purchased more than one house,then he can claim relief in respect of only ONE house provided he satisfies the conditions of section 54.
K.C.Kaushik Vs.ITO 185 ITR 499 (Bom).

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