Income tax on capital gain
This query is : Resolved
29 February 2012
My query is that if we sell a residential property and purchase a guest house for employee, can we claim the exemption u/s 54.
CA Nagesh Diddi
(Expert)
29 February 2012
Hello, as per sec.54 where in the case of an assessee being an individual or HUF, the capital gain .e, the income of which is chargeable under the head "Income from house property" will be exempted provided the assessee has purchased or constructed within a said period a Residential house
So as per this provision
New asset should be Residential Property and not commercial. And if you give House on rent to an Employee, it is a Residential Property.
THEREFORE YOU CAN GET THE BENEFIT OF EXEMPTION U/S 54.
So as per this provision
New asset should be Residential Property and not commercial. And if you give House on rent to an Employee, it is a Residential Property.
THEREFORE YOU CAN GET THE BENEFIT OF EXEMPTION U/S 54.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Late Filing Fee Waiver for Q1 Form 144 (Earlier 27Q) – Transition to Income-tax Act, 2025
- Employee secondment
- Ito add credit side of bank
- GSTR9 Annual Return
- Applicability of tax on invoice
- Positive Balance in RCM Liability/ITC Statement – Commercial Rent RCM – Guidance Required
- Import of Capital Machine
- Capital gain on commercial property and investment in residential property
- Form 144 TDS Return Validation error
- Form 144 TDS Return Validation Error – Mandatory Fields
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- Need Professional Opinion - AY 2012-13 Old Demand & AY 2026-27 Refund Adjustment
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
