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Capital gain query???

Prachi (.) (32 Points)

06 March 2013

Sir

My Assesse has sold an Residential House in FY 2010-11 for Rs 18,00,000/- on 10-2-2011.The Capital arise from this house is fully invested in Construction of House. (on Plot owned by him). upto 31st July 2011 ( within 6 months ). This matter is completed.

Benefit U/s 54 claimed.

Now the question is that,

Same Assesse has sold One more Plot owned by him on 7-7-12. The sale proceeds Rs. 1.1Cr has been fully utilized in CONSTRUCTION OF ABOVE MENTIONED plot.

IS HE ELIGIBLE FOR DEDUCTION U/S 54F ??

IS HE ELIGIBLE TO GET DEDUCTION TWICE IN DIFFERENT YEAR AS HE IS INVESTING AMOUNT IN SAME PLOT FOR CONSTRUCTION & IN DIFFERENT SECTION 54 & 54 F

The Assesse owns ONE RESIDENTIAL House other than the one UNDER CONSTRUCTION.

Please address the query as soon as possible as my client needs to plan accordingly.

Thanks,

Prachi

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5 Replies

Giridhar S Karandikar (Team Lead) (7548 Points)
Replied 07 March 2013

Yes assessee can claim exemption both u/s 54 & 54F for the same house constrcuted provided that all the conditions as specified under these two sections are satisified.

section 54 & 54F are both indepedent sections providing releif to the assesse from payment of tax. also there is nowhere in teh act that prohibits the assessee from claiming exemption under both the sections in respect of the same house.

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CA Sanjay Bag (CHARTERED ACCOUNTANT) (3345 Points)
Replied 07 March 2013

Yes He can so do...........................

CA Deepak Rathore (EXPERT) (281 Points)
Replied 07 March 2013

yeah he can ,
but plz let me know suppose long term CG Rs 50000 on feb 11,

though assessee has started construction with in 3 years

but how govt will know that for ay 12-13 assessee will claiming exemption u/s54, 54f which would start after due date offilling return

, not to charge income 50000

Giridhar S Karandikar (Team Lead) (7548 Points)
Replied 07 March 2013

Assessee is not claiming exemption under both the sections in the same A.Y. relevant to teh F.Y.

u/s 54 he is claiming exemption in A.Y. 2011-12 relevant to F.Y. 2010-11 and u/s 54F he will be claiming exemption in A.Y.2013-14 relevant to F.Y.2012-13.

Captal gains on sale of plot arises in F.Y. 2012-13. So the CG if remain unutilized on or before 31st Jul2013 then the same would be deposited in the CAGS on or before 31st july before filing the I-T return and claim exemption for that year.

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