Deduction u/s.54

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies the conditions for claiming a deduction under Section 54 of the Income Tax Act when selling a house property and purchasing a new one. It confirms that Section 54 allows for such deductions without specific conditions like Section 54F. Furthermore, a landmark ITAT ruling allows taxpayers to invest capital gains from the sale of multiple properties into a single new residential house to claim the exemption.

Sonal

Sonal (Querist)
Follow

17 November 2020 Hi All,
I have 2 house properties. I wish to sell one of that and purchase a new one . Can I claim deduction u/s.54 ? Like sec 54F , section 54 has any condition for claiming deduction.

Thanks in advance

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

18 November 2020 You can claim section 54 exemption. No such conditions in section 54.

Message likes : 1 times

Sonal

Sonal (Querist)
Follow

18 November 2020 can I sell two properties and purchase 1 u/s.54? Any case law reference for the same?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

18 November 2020 Yes, it's allowed.
MUMBAI: In a landmark decision, the Income Tax Appellate Tribunal (ITAT) has held that a taxpayer can avail of tax benefits where long-term capital gains (LTCGs) arising on sale of more than one flat are invested or will be invested in one residential house in India, within the stipulated time.

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