Section 54f
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
01 March 2014
I have sold a Long Term capital assets other than House property and after the date of sale I have purchased a new house property for which 40% payment was made from my own savings and balance through HBL. On the date of acquisition of new house property I do not hold any other House Property.
Whether payment made from HBL will also be treated as consideration for new house for the purpose of claiming the exemption U/Sec 54F of the I. T. Act, 1961?
Whether payment made from HBL will also be treated as consideration for new house for the purpose of claiming the exemption U/Sec 54F of the I. T. Act, 1961?
01 March 2014
it is not necessary that you have to invest the consideration received from the sale in the new house.
It is not relevant whether you have bought the new house using loan. it shall be considered for claiming exemption.
The relevant figures are consideration received from sale and total amount invested in the new house.
It is not relevant whether you have bought the new house using loan. it shall be considered for claiming exemption.
The relevant figures are consideration received from sale and total amount invested in the new house.
02 March 2014
Mumbai tribunal has taken a contrary view that borrowed money can't be used for reinvestment u/s 54F.
Citation:- Milan Shred Ruparel Vs. ACIT [2009]20 DTR 289.
Citation:- Milan Shred Ruparel Vs. ACIT [2009]20 DTR 289.
02 March 2014
yes sir. similar disallowance have been made earlier in cases like Smt. Pramila A. Parikh in ITA No. 2755/Mum./1997.
But other benches even after Ruparel verdict have ruled in favor of assessee such as J.V. Krishna Rao V/s. Deputy Commissioner of Income-tax, Circle 3(3), Hyderabad IT APPEAL NOs. 1866 & 1867 (HYD.) OF 2011 [ASSESSMENT YEAR 2008-09]
But other benches even after Ruparel verdict have ruled in favor of assessee such as J.V. Krishna Rao V/s. Deputy Commissioner of Income-tax, Circle 3(3), Hyderabad IT APPEAL NOs. 1866 & 1867 (HYD.) OF 2011 [ASSESSMENT YEAR 2008-09]
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
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Section 270A penalty
- GST Registration Application -Rejected
- GSTR 1- Amend Credit Note
- GSTR 9C- Table 9
- Tax liability on gift amount given to blood relation
- International transfer pricing- -> father entity vs son entity ->WHERE NO mutual say in management
- Acting as an Agent
- Reimbursement of expense- GST applicable or not
- When was the effective CA partnership deed? Can I use old FRN until new FRN alloted by ICAI?
- To Whom the Professional Invoice should be Raise
- E stamp paper purchase
- Problem in filing Returns for International workers in EPFO
- Clarification for reversal of IGST on transfer of duty-free imported goods from EOU to DTA unit
- EXCESS CREDIT REALTED GST REVERSAL
- Export invoice not reported
- CA Articleship Extension Matter
- GST OFFICER WRONG NOTICE
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Composition Dealer GST Annual Return Filing process
- Revision under Section 264 in The Income Tax Act, 1961
Trending Online Classes
-
Live Course on GSTR 9 & 9C for FY 24-25(Detailed discussions, FAQ, Case studies and Live demo of GSTR 9/9C on GST Portal)
Industry Expert16 November 2025
CAclubindia
