Capital Gains Section 54F

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 November 2010 I sold a long term capital asset & invested in residential house.
On the date of investment i was owning 9 house properties. These properties are being used for commercial purpose (Service Apartment).
Will i be eligible for exemption ?

CA. Aryendra

CA. Aryendra (Expert)
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02 November 2010 yes you can claim

When you can claim:

Income other nine houses shuld not be chargible under the head of "INcome from House Property"

It may be possible only in case of Composite Rent: Where the owner charge a composite rent and it is not possible to ascertain seprately the rent income and income of other assets.

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Querist : Anonymous

Querist : Anonymous (Querist)

02 November 2010 On what basis i can claim. Do you have any case laws

Querist : Anonymous

Querist : Anonymous (Querist)

02 November 2010 All the 9 properties have been given on rent, then it non complies one of the condition u/s 54F.

The condition referred is as under:
the income from such residential house, other than the one residential house owned on the date of transfer of the original asset, is chargeable under the head “Income from house property”

RANGA SRINIVAS

RANGA SRINIVAS (Expert)
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04 November 2010 Dear all

Yes it can be claimed

Querist : Anonymous

Querist : Anonymous (Querist)

04 November 2010 Dear Aryendra,

I think then exemption u/s sec 54F is very restrictive.