Section 54 and 54f

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This query is : Resolved

Gaurav (Querist)

29 July 2013 When Land and building is sold as a Residential house property wherein land is a long term asset and building is short term. Which section can we take benefit from. Section 54 or 54F or none of these

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

29 July 2013 Section 54F can be availed for the long term capital asset being land.

Gaurav

Gaurav (Querist)

29 July 2013 But property is sold as Residential House Property which is an exception of section 54F. Assessing Officer may raise an issue of availing 54 F since the capital asset transferred is a residential house property

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

29 July 2013 Whether you would like to claim indexation benefit on land ?
.
If yes, you can start from the "ground".

.
The Residential House Property can be treated as its cost of improvement.
.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

29 July 2013 Please see Dr. D.L.Ramachandra Rao's case reported in 236 ITR 51 , wherein Madras High court said gain on land can be treated as LONG TERM and gain on building as SHORT TERM.

Based on that decision ,the assessee is eligible for 54F deduction on the land sale.

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