Exemption under section 54

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 June 2012 Dear colleagues and experts,

My friend is Non Resident and he owns a residential house in India. He wants to sell that and repatriate the amount to USA (where he currently stays). Will the benefit under section 54 be available to him if he invests the capital gains amount to buy a residential property in USA?
If no, he has to pay tax tax on long term capital gain @ 20%. Am I correct?
Please help.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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28 June 2012 Exepmtion u/s 54 is available if the assessee purchases or constructs a RESIDENTIAL HOUSE.

There is no condition u/s 54 as to the location of such residential house.

In my opinion, the exemption will be available even if the house is situated in USA.

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