54F on capital gain

Hi

Mr.X had a self occupied residential property and a commercial property.

He sold the commercial property and out of the total proceeds, he purchased residential property.

The newly acquired residential property fetches a monthly rental income..

Can he still claim the deduction u/s 54F for the commercial property sold 

Please guide

Replies (3)
Quick Summary
This discussion explores whether an individual can claim a deduction under Section 54F of the Income Tax Act after selling a commercial property. The individual reinvested the proceeds into a new residential property which now generates rental income. The consensus suggests eligibility, as the key condition is not owning more than one residential house (other than the newly purchased one) at the time of sale.

yes eligible...                 

Sir 

Thank you for the quick response 🙏 

Here is the attachment of Sec54 F definition 

Can you please elaborate the meaning of the highlighted text 

Thank you 

If  "Other than one residential house"............ not eligible, but you had only one HP other than what you purchased, so eligible u/s. 54F...

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