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Sec. 54 exemption

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Querist : Anonymous

Querist : Anonymous (Querist)

04 February 2013 1/2/2011 house(A) sold and LTCG Rs.200,000. On 3/2/2011 house(Z) purchased for Rs.12,00,000 and claimed exemption u/s 54 of Rs.200,000. Again on 1/9/2011 another house(B) sold and LTCG recorded Rs.500,000. So the question is whether assessee claim the exemption u/s 54 for house(Z) [As the said house is purchased within 1 year before the date of transfer of original asset].

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

04 February 2013 Exemption U/s 54 can not be denied on the ground that the assessee has already claimed exemption against the house Z.
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In my view, condition for investing the Capital Gains can only be invoked and the cost of House Z is sufficient so as to cover the Capital Gains arisen in two AYs.
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Querist : Anonymous

Querist : Anonymous (Querist)

05 February 2013 Thnx Sir...
Actually I have also same view as your's regarding this. And also law doesn't provide anything specific regarding this.

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