Nr claiming deduction u/s 54 - construction of house on land owned by mother.
This query is : Resolved
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.
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.
Nikhil Kaushik
(Expert)
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!
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!
Nikhil Kaushik
(Expert)
09 March 2014
you are welcome Nawaz.
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