54f exemption

Tax queries 452 views 3 replies

Rohit Tulshyan

RTProfessionals

333 Points Posted on 18 July 2014

This is regarding LTCG Exemption u/s 54F. An assessee wants to claim exemtion u/s 54F however he already has income chargeable from house property. These properties are godowns and other property but are not residential house property.

I would like to clarify if these house property will be termed as Residential house property and can Exemption u/s 54F be denied stating that other properties are chargeable under the head house properties.

Thank You.

Replies (3)

CA Anoop Tiwari

Practicing Chartered Accountant

135 Points Posted on 20 July 2014

Section 54F precribes undermentioned conditionsto claim exempiton

1) There should be long term capital gain other than residential house property

2) The amount should be invested in a rsidentail house property in India (changed in budget 2014).

3) The assessee should not possess more than one house property at the time

of this investment.

4) Exemption amount would be =Amount invested*capital gain/net consideration.

In your case as assessee already holds more than one house property so exemption would not be available under this section.

Rohit Tulshyan

RTProfessionals

333 Points Posted on 20 July 2014

Thank you.

But as I mentioned, The propery is a godown and a shop bith let out and the income is chageable under house property income but both are not meant for residential purpose. Still the exemtpin cannot be claimed.?