Exemption under section 54 F

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CA Manikandan.A.V (Querist)
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26 May 2009 Is it necessary that the new residential property bought should be in India? If it is purchased in Foreign Country,Exemption allowable or not?

All the other conditions fulfilled.

Please Reply. Advance Thanks..

Manikandan.A.V

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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26 May 2009 yes, property should be brought in India only.

CA. Gurdeep Singh Chawla

CA. Gurdeep Singh Chawla (Expert)
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26 May 2009 in india

CA Manikandan.A.V

CA Manikandan.A.V (Querist)
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26 May 2009 Thank you for your reply. Can you give me any Case laws, decisions in this regard. I got a Case law stating that the the residential property need not be in India. Please. Advance thanks.

Manikanta Raju CA,CWA,(CS)

Manikanta Raju CA,CWA,(CS) (Expert)
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26 May 2009 You cannot acquire immovable property ouside india due to FEMA restrictions
If you want to purchase an house property u must earn income in foreign country and you can purchase with that proceeds or you must purchase that property with the funds lying in your NRI a/c
So it is not possible to cliam deduction u/s 54F by purchasing an house property

taxindiaconnect

taxindiaconnect (Expert)
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26 May 2009 There is no provision in section 54F to that sort that the property should be situated in India, however an inference may be drawn from the language of the proviso to section 54 F where it provides that the nothing contained in this subsection will apply where (b) the income from such residential house other then on residential house owned on the date of transfer of the original assets, is chargeable under the head "Income from House Property" Thus in this case the term used Income from house property may be inferred to mean that the property should be situated in India as the income from a property situated in India is taxable under this head of IT Act and the income from any property situated outside India may be taxable in the country where it is situated. Thus considering this analysis, we can conclude that the property for claiming exemption should be available in India.

CA Manikandan.A.V

CA Manikandan.A.V (Querist)
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04 June 2009 Please give me any Case laws in this regard,....

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