Exemption u/s 54 & 54f

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This query is : Resolved

CA. VIKAS GUPTA (Querist)

23 May 2014 Dear friends,
A person has sold one long term residential property and realized gain of Rs.45 Lacs. further he sold rights on a property and sale consideration of the same is Rs.55 Lacs.
Now he has purchased one residential property for Rs.1.25 Crores.
My question is, whether he can claim benefit of section 54 & 54F both on purchase of only one residential property.
He has complied with all the other conditions u/s 54 & 54F
Please reply with any legal reference

thanks

CA Mohit Bansal

CA Mohit Bansal (Expert)

23 May 2014 As you have invested whole consideration of Rs. 1Cr then why don't you claim in section 54F only

CA. VIKAS GUPTA

CA. VIKAS GUPTA (Querist)

23 May 2014 Hi Mr. Mohit,
u mean to say that i should not go for exemption u/s 54 and should pay tax on gain from sale of residential property even when i purchased new house property in which full capital gain is exhausted.

CA Mohit Bansal

CA Mohit Bansal (Expert)

23 May 2014 No, You can claim entire exemption under section 54F

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