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Benefit us 54

21 August 2011

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

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4 Replies

CA.Sampath Rao (In Practice) (78 Points)
Replied 21 August 2011

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

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Hemali Shanghvi (Owner) (136 Points)
Replied 21 August 2011

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

vaibhav (CA) (49 Points)
Replied 21 August 2011

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

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Hemali Shanghvi (Owner) (136 Points)
Replied 22 August 2011

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?