section 54

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

31 December 2010 If an assessee sells a residential house and purchase the reseidential house from her wife name, whether exemption u/s 54 can be claimed.
If Yes, Whether A.O can treat it as Gift or Loan to wife and taxed the same under the head income from other source.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

31 December 2010 Yes, under Section 54 there is requirement of purchases, or you can say the amount has to be appropriated towards the purchase of new house.

Gift to wife is exempt U/s 56. Hence it can be not treated as income from other sources.
If the new house is being self occupied for own residence nothing can be added to Income.

Message likes : 1 times

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

31 December 2010 If reinvestment in new residential house is in the name of wife exemption u/s 54 will be allowed to husband in view of the following decision.
CIT Vs. V.Natarajan (2006) 154 Taxman 399(Mad).

Message likes : 1 times

Vivek Raju P

Vivek Raju P (Expert)
Follow

01 January 2011 I guess purchase of the new house even if in the name of the wife will be allowed. Sec 54/54F specify that the assesse has to purchase a residential property.. but it is not specified that the property has to be purchased in the name of the assessee only. In my view it can be purchsed in the name of any person and it will suffice the requirement. There have been cases where this has been disallowed by the AO but the assessee will also have a case to present as per interpretation of the provisions

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Mohit Kumar

CA Narender Yarragorla

Aayushi Chauhan

MUNISH KUMAR

CA Aakarsh Jain

Subscribe Now

section 54

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA