Exemption uder section 54 of the income tax act

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 October 2015 Hello,

My client is owner of 4 residential house properties. He wants to dispose off one HP and invest in new residential HP. Can he get deduction under section 54 from long term capital gain ?

Plain reading of the said section says that the assessee should invest in one new residential HP. But my doubt is that whether the assessee can claim exemption under this section if he is already owner of 3 other residential properties.
Kindly reply asap.

Thanks

Amol S Joglekar

Amol S Joglekar (Expert)

06 October 2015 yes, the assessee can claim the exemption under section 54

praveen

praveen (Expert)

06 October 2015 The person can be owner of any number of properties. All that needs to be taken care is that the capital gains arising has to be invested in another house property. This new property has to be 'one'

Amol S Joglekar

Amol S Joglekar (Expert)

06 October 2015 even many courts have concluded that section 54 does NOT aim at SINGULAR. It can be PLURAL

Querist : Anonymous

Querist : Anonymous (Querist)

06 October 2015 Thanks a lot sir for prompt reply.

Amol S Joglekar

Amol S Joglekar (Expert)

11 October 2015 You are most welcome.
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