Section 54F exemption

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afthab junejo m p (Querist)
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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)
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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)
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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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