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Sec 54F

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Querist : Anonymous

Querist : Anonymous (Querist)

20 September 2010 I have sold a piece of land which was jointly held by my brother. We intend to invest the entire Net consideration in two residential house properties, one in my name and the other in my brother’s name. We intend to take benefit u/s 54F.

We currently reside in flat 1 and flat 2, and both these flats are also jointly owned by me and my brother. There are no walls between the two flats. Flat 1 and Flat 2 has common entrance and is in essence a single house for me and my brother albeit there are two agreements for the flats.

Section 54F states that at the time of transfer of the original asset (land) the assessee should not own more than one residential house property to avail the benefit under that section.

Would like to know if my owning flat 1 and flat 2 jointly with my brother would preclude us from taking the exemption u/s 54F?

NITIN SHARMA

NITIN SHARMA (Expert)

22 September 2010 YOU CAN CLAIM EXEMPTION U/S 54F WITHOUT ANY PROBLEM BECAUSE AS PER TRANSFER OF PROPERTY ACT YOU ARE THE OWNER OF ONLY SINGLE RESIDENTIAL HOUSE PROPERTY AND THE INCOME TAX ACT DOES NOT OVERRIDE THE PROVISIONS OF TRANSFER OF PROPERTY ACT.

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