Investment in house property
This query is : Resolved
SUNIL KUMAR
(Querist)
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
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
(Expert)
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
OM SAI SRI SAI JAI JAI SAI
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02 October 2013
Agree with Expert
CA Pallav Singhania
(Expert)
02 October 2013
You can claim Exemption U/S 54 for investing in other house.
SUNIL KUMAR
(Querist)
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
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.
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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