Benefit us 54

749 views 4 replies

Hi,

My client owns a land which is leased to him by State Govt. for 99 years. His wife owend a property which she sold this year and is using the proceeds to construct the house on clients land. can she claim tax benefit u/s 54? No where in the act they have mentioned that to construct the house they have to own the land either. Would they have to complete any formalities to claim this tax benefit?

Thanks
Hemali

Replies (4)

Yes, wife of your client can claim u/s 54 even though she constructed house in the lease land of her husband

Hi Sampath,

Thanks for your reply! Does the wife need to show any ownership of the constructed property for eg via an agreement or something?

Thanks again!

Regards

Hemali

 

 

Wife just have to collect all the proof for construction such as Bills , Labour charges , artichect certificate , MCD complition certificate.

 

 

 

 

Thanks Vaibhav,

one last query, is this anywhere specifically mentioned that the house can be constructed on a land owned by husband to claim tax benefit us 54, any case law or anything?

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