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Claiming Exemption under sec 54 or 54f of ITA

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Vishnu Vijay Shetty

Direct Tax Executive

30 Points Posted on 13 June 2024

Hi everyone,

My Doubt qt is,

Mr.A has 2 residential unit in his name and one land ,now he is planning to sell land and invest in another residential house but he want to register in his wife/or children name.

01.is it possible to do?

02. and after register in his wife/or children name , is he eligible to claim exemption under sec 54 or any sec under 54 of ITA.

03. if it is possible , plz give case law for that.

plz suggest me

Thank You.

Replies (3)

Quick Summary

This discussion addresses the possibility of claiming capital gains tax exemption under Section 54 or 54F of the Income Tax Act when selling land and reinvesting in a residential property. The query specifically asks if exemption is possible if the new property is registered in the name of a spouse or children. The response clarifies that while registering property in a spouse's or child's name is a personal choice, it generally disqualifies the individual from claiming exemption under Section 54F due to unmet eligibility criteria.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121546 Points Posted on 13 June 2024

1. Yes, possible, after all it is your choice.

2. Not eligible for sec. 54F exemption, as the eligibility criteria as per the section are not met.

3. NA.

sabyasachi mukherjee

Profession

19978 Points Posted on 13 June 2024

Claiming exemption after conditions are eligible

Aashok Kumar Sharma

Finance/Compliance Consultant

77850 Points Posted on 08 November 2026

Two houses plus land: 54F has limits:
• If Mr A sells land (not a house), the exemption is under Sec 54F (invest net consideration in one residential house). Condition: on the date of transfer, he mustn't own more than one residential house (other than the new one). Since he already owns 2 residential units, 54F isn't available.
• If he sells one of the residential units, Sec 54 applies (no restriction on owning other houses). Reinvest the LTCG in a new house.
• Alternatively, 54EC bonds for any LTCG on land or building (up to Rs 50 lakh).