Section 54f

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 March 2012 One year ago Assessee has sold shares and Net Consideration from sale of such shares invested in New House.

Capital Gain arises on above sale of Shares were claimed exempt u/s 54F on the basis of above investment.

in current financial year 2012-13, a Private Limited Company in which assessee is a director has purchased a house in the name of the assessee.

Company will disclose this house in its Balance Sheet as Fixed Asset. Assessee is just holding this house on behalf of the company.

Should such transaction be considered as violation of section 54F.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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30 March 2012 Section 54F provides that where the assessee purchases an additional house property within a period of 2 years, then the capital gains exempt earlier shall be taxable in the year of purchase.

Accordingly, in the above case, the capital gain shall be taxable as the assessee has become the owner of another house property.

Querist : Anonymous

Querist : Anonymous (Querist)

30 March 2012 Sir, I would like to say that as per the decision of various courts Company may held its asset in the name of its director. Hence Real owner of the asset is company and not the assessee. Assessee is holding asset on behalf of company.

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