08 March 2014
Dear sir, Please provide me a clarification on Exemption u/s 54 - Assessee is an NR and has sold a flat (LTCA) and has constructing a house on land owned in his mother's name - is he eligible for deduction u/s 54. If not, can he enter into an agreement with his mother so as to obtain partial ownership and claim exemption u/s 54. Is there any other thing which could be done. Thank you.
08 March 2014
1. yes, you can claim exemption under section 54.
2. yes the mechanism should to be buy a part of land from your mother...your mother can then reinvest the consideration received against partial construction cost to claim section 54 exemption herself too!
CAclubindia
