Exemption u/s 54

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Querist : Anonymous

Querist : Anonymous (Querist)

06 September 2014 One of my client has purchased a residential property in 2006. He purchase another residential house property in 2011. In Sept 2014 he sold the house property which was purchased in 2006. He invested the sale proceeds to purchase another house property to claim exemption u/s 54. Whether he can claim exemption u/s 54 as per the latest provisions of the Act? Reasons?

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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06 September 2014 Yes exemption is available provided the purchase is made within 2 years after transfer or within one year before transfer.

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Querist : Anonymous

Querist : Anonymous (Querist)

06 September 2014 but as per latest provisions only one residential house ther is exemtion.

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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06 September 2014 Yes but you are investing in only one residential house to claim exemption. The condition that the assessee should not have more than one residential house on the date of transfer is given in section 54F and not in section 54.

Querist : Anonymous

Querist : Anonymous (Querist)

06 September 2014 No, as per the latest provisions the condition of One residential house in India is applicable in both the sections i.e u/s 54 & u/s 54F

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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06 September 2014 The amendment is restricted to reinvestment in ONE residential house in INDIA. The section ,pre or post amended, does not say that the assessee should not own more than one residential house at any point of time.
Hence, view expressed by Ahhishek Ji seems to be correct.

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