Jagdish (Article) (123 Points)
01 June 20111. A house property sold by me, and my son purchase/construct new house.
Can I use receipt of after property?
Can be claimed u/s. 54?
2. I sold my office in June 2010, and it is depriciable asset. I further purchased new office in Jan 2011, and it is in work in progress, so I cant capitalised it.
Am I liable for capital gain for office sold?
CA Nitu Agarwal
(CA, M.Com)
(266 Points)
Replied 01 June 2011
1.Exemption u/s 54 can be claimed if the new property is purchased by the assessee himself who has sold the old property. So you CANN'T CLAIM exemption for the proprty purchased by your son.
2. Exemption u/s 54 can be claimed in respect of RESIDENTIAL property. So you are liable for Short term Capital gain as office sold by you was a depreciable asset.
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