Section 54f

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This query is : Resolved

CA Birju Ruchir Desai (Querist)

09 August 2011 In one of my client case there is parents and daughter. They all jointly own 1 residential property and daughter is married and she owns another residential property in which she resides with her inlaws nd husband. they sold agriculture land which all the three jointly own and want to take exemption under section 54F. Now on the date of transfer of original asset that is agriculture land daughter is the owner of two residential property whereas parents are owner of 1 residential property. Can they claim exemption U/s 54F??
Will it make any difference if the new property is purchased only in the name of parents? So that all the three does not own more than 2 residential property.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

10 August 2011 The land is Urban Agriculture land ?
If No. No Capital Gains will arise.
If yes - then second question will be -

The shares in all the properties are defined? If yes,
Section 54F will not be available to the daughter due to the reasons you know. Capital Gains can be invested in Bonds etc.. U/s 54EC, or new agriculture land can be purchased U/s 54B.

54F will be available to the parents and not to the daughter.

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CA Birju Ruchir Desai

CA Birju Ruchir Desai (Querist)

10 August 2011 Thanx Sir yr reply is always prompt,convincing and satisfactory.

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