Exemption sec 54 f

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 January 2016 Assesses had shop constituted with ground floor and first floor. ground floor was exclusively used by assesses for commercial purpose since 1978 . First floor was being used as residential purpose by assesses for years. Now, Ground floor is sold by assesses and purchase new house but first floor is still own by assesses which he wanted to let out. Please advise whether assesses can claim benefit under sec 54 F. if not then how to save capital gain.

Thanks in advance.

CA CMA CS Ram Pavan Kumar Melam

CA CMA CS Ram Pavan Kumar Melam (Expert)
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09 January 2016 Yes, deduction u/s 54F is available to the assessee.
The assessee has to purchase within a period of 1 year before or 2 years after the date on which the transfer took place or within 3 years from the date of transfer constructed, one residential house in India.
He can own not more than one residential house, other than the new asset going to be purchased or constructed, on the date of transfer of the original asset.

Refer section 54F for the conditions.

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Querist : Anonymous

Querist : Anonymous (Querist)

09 January 2016 Thank you sir

Sir

what is meaning of below term :
[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.

As assesse has still own first floor which is being used as residential house. and assesse had purchased new house before sale of old assets.

CA CMA CS Ram Pavan Kumar Melam

CA CMA CS Ram Pavan Kumar Melam (Expert)
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09 January 2016 He can own not more than one residential house, other than the new asset going to be purchased or constructed, on the date of transfer of the original asset. In this case the assessee is eligible for deduction u/s 54F

CA CMA CS Ram Pavan Kumar Melam

CA CMA CS Ram Pavan Kumar Melam (Expert)
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Querist : Anonymous

Querist : Anonymous (Querist)

09 February 2016 Thank you sir,
i understood as per below :

Assesse can own two house as on date of transfer, first old house which he has and second is house which he is going to purchase for claiming exemption.

may i right ?

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