Investment in house property

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SUNIL KUMAR (Querist)
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02 October 2013 Hello Sir,
capital gain made on sale of house property exemption u/s 54 can claim in investment in Other Existing house property Assessee has two houses

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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02 October 2013 If such existing house property is purchased or constructed with in one year before from the date of capital gain arises then you can claim such exemption.

OM SAI SRI SAI JAI JAI SAI

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CS RAJESH C.CHOUDHARY

CS RAJESH C.CHOUDHARY (Expert)
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02 October 2013 Agree with Expert

CA Pallav Singhania

CA Pallav Singhania (Expert)
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02 October 2013 You can claim Exemption U/S 54 for investing in other house.

SUNIL KUMAR

SUNIL KUMAR (Querist)
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03 October 2013 But sir The existing House property Exist from old time and now we want to construct new floor on this building it`s not a new building

Aashok Kumar Sharma online

Aashok Kumar Sharma online

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01 August 2024 Under Section 54 of the Income Tax Act, the capital gain exemption can be claimed if the proceeds from the sale of a house property are invested in a new house property.

Since you already have two existing properties, you can still claim the exemption if you invest the capital gains in constructing a new floor on an existing property. However, the construction should be substantial and result in a significant enhancement of the property’s value.

To ensure compliance:
- The new floor should be constructed within three years of the sale of the original property.
- The construction must be considered a substantial addition to the existing property, not merely routine repairs or renovations.

Make sure to keep detailed records of the construction costs and consult a tax advisor to confirm eligibility.

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