Exemption u/s 54

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Ajay Sharma (Querist)
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28 December 2013 If a residential house is VACANT for whole P.Y. Is it a residential house for the purpose of claiming exemption U/S 54? Whether it is must either to self-occupied or to let out such property.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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28 December 2013 yes. it is a residential house for claiming exemption u/s 54.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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28 December 2013 It is a vexed issue.

Answer is NO if you go by the head line of section which says 'used for residence'.

Answer is YES if you go by the content of section which says 'being a residential house'.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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28 December 2013 well given the fact that section does not exclude vacant houses (since it provides that the income from the house should chargeable under "income from house property" which shall also include vacant house (as a deemed let out property)), there is no reason to say that the proposed sale of the vacant house shall not be eligible for exemption benefits under section54.

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