LONGTERM CAPITAL GAINS ON PROPERTY LET OUT TO OFFICES

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This discussion clarifies the tax treatment of capital gains when selling commercial property used for business or let out as offices. It confirms that Section 54F exemption is applicable for such sales. However, if the owner already possesses more than one residential house at the time of the sale, the exemption under Section 54F will not be available.

C.S.MADHURANATH

C.S.MADHURANATH (Querist)
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09 October 2020 MY QUERY: 1) WHAT IS COMMERCIAL PROPERTY FOR THE PURPOSE OF CAPITAL GAINS UNDER INCOME TAX ACT
2) HOW TO CLAIM EXEMPTION ON SALE OF ABOVE PROPERTY?
WHETHER UNDER SECTION 54 OR 54 F?
3) IF HE ALREADY OWNS MORE THAN 1 RESIDENTIAL HOUSE AS ON DATE OF ABOVE SALE, WILL IT MAKE ANY DIFFERENCE.
THANKS & REGARDS

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 October 2020 1 Property used for business or let out for business or office is considered as commercial property.
2 54F section exemption available.
3 In such a case 54F exemption not available.

C.S.MADHURANATH

C.S.MADHURANATH (Querist)
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13 October 2020 SIR, YOU MEAN TO SAY SECTION 54 NOT AVAILABLE, RIGHT? BECOZ IN SL NO 2 & 3 OF YOUR REPLY YOU HAVE MENTIONED 54F IS AVAILABLE AND 54F NOT AVAILABLE, RESPECTIVELY.
PL CALRIFY

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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13 October 2020 Yes, 54 section exemption not available.

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