Long term capital gains - sections 54f and 54

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R Chadha (Querist)
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15 January 2012 There is no definition of "Residential House" in the Act.
Kindly let me know if there is any case law which defines the minimum construction for a building to be deemed to be a "Residential House" for Section 54F and for section 54
Thank you
R Chadha

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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15 January 2012 Any human-made structure used or intended for supporting or sheltering any use or continuous occupancy for residential or dwelling purpose can be said as a residential house.
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If on a piece of land one room is constructed and it is used for residential purpose, it is covered by the definition of Residential House.

We have to consider its income under IFHP.
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A residential house may be of any regular geometric or irregular shape. The essence is the purpose for which it is normally being used. No prescribed minimum area has been prescribed. In general terms a hut is also a residential house like a palace.
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Section 54 and 54F do not prescribe any rigid definition.
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R Chadha

R Chadha (Querist)
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15 January 2012 If you know of any case law, please advise.
Thank you

CA.PRAMOD KUMAR PANDA

CA.PRAMOD KUMAR PANDA (Expert)
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15 January 2012 Please refer these two caselaw for better clarification on Sec-54F and Residential House as contemplated in the section.
1. 2004 91 ITD 53 Bang, (2005) 92 TTJ Bang 597
2. [2007] 107 ITD 327 (MUM.)(SB)

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