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Exemption u/s 54

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PRITAM (Querist)
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28 August 2009 Whether a fully furnished flat purchased by an individual assessee, and the agreement entered between the vendor & the buyer includes the amount of the flat plus the furniture provided by the vendor. so whether in this case can the assessee claim exemption for the whole agreement value or only for the flats value under section 54 of I.T.Act.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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28 August 2009 "Exemption is available u/s 54 for cost of purchase of house as well as cost incurred for making the house habitable." from this
excerpt it can be concluded that if the value of furniture is insignificant in compare to cost of or you may prove that without the furniture house was not inhabitable then it can be claimed otherwise not.

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