Clarification on section 54

Dear All

U/s 54 assessee gets exemption if he purchases any residential house 1 year before or 2 year after or if he construct a house within 3 years from the date of transfer. But it is nowhere specified that on whose land the the construction is to be done or whether or not cost of land will be included in the cost of construction or not.

Thanks

Replies (12)

cost of land will be treated as construction... construction of house property includes land,,

cost of land is included in the cost of construction only...there cant be a builidng wothout a land

Mr. Sunshine is right

"Cost of Land include in a cost of Construction"

Agree with Sidhharth...

the land is ofcourse own by the Assessee and construction includes Cost of land. land can be treated as part of construction.
 

Dear All

Thanks for the reply. But if the land is already owned by the assessee then construction of a building on that land will be allowed as exemption only and if the land is purchased 6 months before the date of sale then will the exemption be still available.

i think yes..even if the land is owned, the cost of construction of the building can qualify for exemption....

Yes evenif the land is preowned exemption is allowed for construction also.

Originally posted by : Vijay Manwani

Yes evenif the land is preowned exemption is allowed for construction also.
 

 Yes, I am also agree with Mr. Vijay Manwani

/experts/clarification-on-section-54-699250.asp

 

guys please have a look at the above link.

 i have question

 

an assessee has sale freehold property and purchase a lease hold property with 83 years lease  can assessee has claim exemption u/s 54

Dear Mr. Rohit, if an assessee has sale freehold property and purchase a lease hold property with 83 years lease  then he also allowed to claim exemption u/s 54 (for referance please read the below note) :-

NOTE :-

For the purpose of Section 54 the House Property is a "Residential house property" whose income is taxable under the head "Income from house Property" **


**Condition for Income taxable under the head "Income from house Property" :-
Deemed Owner also be taxable under this head. If a person taking a property on lease for not less than 12 Year is also be deemed to be owner of property.

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