Whether simultaeous exemption u/s 54b and 54f allowed

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CA Aagam Shah (Querist)
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22 August 2017 We seek advice with citation if any available in respect of claiming simultaneous exemption under section 54B and 54F of the Act on Long term capital gain on sale of agricultural land.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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22 August 2017 capital gains could be utilized simultaneously for 54b and 54F.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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22 August 2017 The Mumbai bench of the Income-tax Appellate Tribunal (Tribunal) in a recent case[ACIT vs Shri Deepak S Bheda (ITAT No. 5011/Mum 2010)] upheld the simultaneous claim by the taxpayer for exemption of capital gains in respect of investment of the net sale consideration / capital gains both in the acquisition of a house as well as specified bonds. The tax laws permit an exemption in respect of the investment of the net sale consideration arising from the transfer of a long-term capital asset, in the acquisition of a residence, within the time stipulated.[Section 54F of the Income-tax Act, 1961 („the Act‟)] An exemption is also prescribed in the case of investment of the gain from such a transfer in the purchase of specified bonds.[Section 54EC]

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