Applicability of 54F

219 views 1 replies

I have 2 residential properties as under

1. Inherited share from fathers house 12.5%. Rest share to other family members

2. Inherited share from deceased wife 50%. Balance 50% with mother-in-law (she purchased the house but sale deed doesn't mention it)

Qustion. I have sold a residential plot and have substantial capital gains. Can I use the net proceeds to buy a house to claim exemption under  Section 54F?

Replies (1)

Summary: You can claim an exemption under Section 54F if you invest your net sale consideration into one new residential house in India, provided you do not own more than one other residential house on the date of sale. Because you are a co-owner of two properties, your eligibility is legally ambiguous; while some tribunal rulings support the idea that fractional/joint ownership does not disqualify you, it remains a contested area that may invite scrutiny from the Income Tax Department.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
06 July 2026
Chartered Accountant (Indirect Taxation)

Gowra Ventures Pvt Ltd

Hyderabad

CA

View Details
Company
ARTICLESHIP 27 June 2026
Article

SNCO

Mumbai

CA Inter

View Details
Company
05 July 2026
Financial Controller

NovumLake Partners

Mumbai

CA

View Details
Company
06 July 2026
Accountant

Agarwal Anoop and Associates

Noida

CA Final

View Details
Company
22 June 2026
Finance Manager- Chartered Accountant

Triveni Turbine Limited

Bengaluru

CA

View Details
Company
ARTICLESHIP 30 June 2026
2 posts Article assistant and Articleship completed students

Chirag N Shah & Associates

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 11 July 2026
Article

SNCO

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 10 July 2026
Article Assistant

N S Gokhale & Co

Thane

CA Inter

View Details