Yes, Assessee can claim exemption of sec54 in 2009-10 and sec 54f in 2010-10
There is nothing in the Act that prohibits claim under section 54 & 54F simultaneously, there is no bar if assessee fulfils both of the conditions of sec 54f
Assuming that asset sold is long term also new house in 2010-11 is purchased within 1 year of purchase of pervious house in 2009-10
2009-10
sale consideration 10,00,000
less ICOA nil
LTCG 10,00,000
less exemption
u/s54 (10,00,000)
LTCG nil
2010-11
sale consideration 50,00,000
less ICOA nil
LTCG 50,00,000
less exemption (40,00,000)
u/s54F
50,00,000/50,00,000*40,00,000
LTCG 10,00,000
Please correct me if i am wrong
For Sec 54F Eligible Assets sold should be Any long term asset (other than a residential house property ) provided on the date of transfer the taxpayer does not own more than one residential house property from the assessment year 2001-02 (except the new house)
In the above case, assess has already purchased the 'house property' before selling 50 lakh property. so i doubt whether this cn b applied.
and as per my knowledge Sec 54 and 54F can be applied in same FY not in simultaneous years.
So House Property is residential or not should be checked.
| Originally posted by : CA.Anupriya Agarwal | ||
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For Sec 54F Eligible Assets sold should be Any long term asset (other than a residential house property ) provided on the date of transfer the taxpayer does not own more than one residential house property from the assessment year 2001-02 (except the new house) In the above case, assess has already purchased the 'house property' before selling 50 lakh property. so i doubt whether this cn b applied. and as per my knowledge Sec 54 and 54F can be applied in same FY not in simultaneous years. So House Property is residential or not should be checked. |
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But anupriya thats the issue it is assumed that new house is purchased within 1 year of purchase of old house
can we treat it same as sec54 and sec54ec
can you provide any ruling with your answer
i dnt ve any rulings for my answer.
assumptions cn b done on anything.
still i think it cannot b taken..
ok i wil try nd find out any ruling with these 2 sec
Agree with Ms. Anupriya.
Benefit under section 54 and 54F cannot be claimed simultaneously. Proceeds are from sale of land, but the assesse is already in possesion of a residential house property from the 1st investment (claimed u/s 54).
But they cannot be applied in the same FY either. As per the provisions of the act, if he holds a residential house property currently, benefit u/s section 54F cannot be claimed. If he claims 54F and then purchases the residential house property, benefit under the section stands withdrawn & subject to LTCG.
Kindly correct if wrong.
Exemption u/s 54 & 54F can be taken together for a single property otherwise not.
suo moto purpose of claiming the both benefits can be attained provided the money (capital gain) us utilized towards the acquire of the new property (one yr prior to) ,,,,,,..............so if you have acuired the property in past year but the payment is due and would be paid with the money received from the sale of property B, then you can avail
if the money is not used in that property in question, then no exemption. the motto is to use the money in new property, not to allow exemption by book entry.
| Originally posted by : U S Sharma | ||
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suo moto purpose of claiming the both benefits can be attained provided the money (capital gain) us utilized towards the acquire of the new property (one yr prior to) ,,,,,,..............so if you have acuired the property in past year but the payment is due and would be paid with the money received from the sale of property B, then you can avail if the money is not used in that property in question, then no exemption. the motto is to use the money in new property, not to allow exemption by book entry. |
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refer case law of Bombay High Court in CIT v/s Dr.P.S.Pasricha
It is not required to use money received from sale consideration of old property for the purchase of new new property.
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