Capital Gains - Exemption u/s 54F

This query is : Resolved

CA K.Srividhya (Querist)
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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?

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?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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18 June 2020 Joint construction will not amount to construction ,meaning thereby 54F can be claimed for the house constructing in his own name.
Inference - CIT Vs.Kapil Nagpal (2015) 235 Taxman 539 (Delhi)

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