Capital Gains - Exemption u/s 54F

This query is : Resolved

CA K.Srividhya (Querist)
Follow

17 June 2020 If a person is constructing one house property in his own name and one house property jointly with his spouse simultaneously , can he claim exemption u/s 54F for capital gains arising on sale of land?

Whether exemption u/s 54F is allowed for the property which is constructed in his own name?

Regards.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

17 June 2020 54F will be allowed provided
* he should not own more than one house on the date of transfer of land and
* the sale should precede the construction of the new house.

CA K.Srividhya

CA K.Srividhya (Querist)
Follow

17 June 2020 Sir,
The Proviso to Sec 54F states,

Provided that nothing contained in this sub-section shall apply where—

(a) the assessee,—

(i) owns more than one residential house, other than the new asset, on the date of transfer of the original asset; or

(ii) purchases any residential house, other than the new asset, within a period of one year after the date of transfer of the original asset; or

(iii) constructs any residential house, other than the new asset, within a period of three years after the date of transfer of the original asset.

Will the Joint construction of house property with spouse amount to construction of a house property other than new asset impacting (iii) above?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok