Section 54f ,exemption,one house-clarification

This query is : Resolved

anant (Querist)
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12 January 2014 Dear Experts,
Assessee is owner of one residential Flat(bought for claiming exemption u/s 54F in fy 2010-11). He had also booked an under construction residential flat in fy2012-13 (and claimed exemption u/s 54 )and is likely to get possession and registry of sale deed after at least one year.
Recently (fy2013-14) Assessee has sold an asset u/s 54F (vacant urban land). MY QUESTION IS
Can he purchase another residential flat,house etc and still get capital gains exemption u/s 54F?

Thanks in advance.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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12 January 2014 Possible to claim 54F since the assessee 'owns one residential house' only in FY 2013-14.

anant

anant (Querist)
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12 January 2014 Dear Sir,
Does that mean that the res flat booked under an agreement for sale executed with the builder does not constitute ownership of that under construction res flat?
Thanks in advance

Nikhil Kaushik

Nikhil Kaushik (Expert)
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12 January 2014 I have to disagree a bit here...reason: the proviso also states that the assessee cannot construct or purchase another residential house within next three years or one year respectively.

now the booking in FY 2012-13 for the under-construction will become the residential house in next one year(irrespective of whether you treat it as construction or outright purchase)..so in any case it would get hit by the proviso stated above...

So I would say that 54F wont be available in this case.

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