Section 54F exemption

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afthab junejo m p (Querist)

24 February 2010 Inorder to cliam exemption u/s 54F, a reisdential house to be constructed or purchased. Whether the above "residential house" includes only the self occupied house and excludes let out residential house? If the assessee purchased a residential house for self occupation and claimed exemption u/s 54F and later on used for letting out. Then what will be the impact on his taxation?

Bimal Thacker

Bimal Thacker (Expert)

24 February 2010 There is no such condition of only the self occupied house and not let out residential house.
however care should be taken for other condition particularly - The assessee should not own on the date of transfer of the original asset more than one residential house (Other than the new house). He should also not purchase within a period of two years after such date or construct within a period of 3 years after such date any residential house (Other than the new house)

afthab junejo m p

afthab junejo m p (Querist)

24 February 2010 If he construct or purchase resort, exemption 54F is still available?
If he convert (or demolish the new house) the new house into a resort, what will be the effect?

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