clarification required regarding exemption u/s. 54

Mr. A has three house properties. He sold out one of his residential house properties, He wants to claim an exemption u.s, 54 by investing in new residential property. 

Is he eligible to claim exemption u/s. 54 even though he has balance two residential house properties at the time of  investment of capital gains in a new residential house property?  (as it is not permissable u/s. 54F to have more than one residential house property at the time of investment of capital gains)

Is there any circular or case law or notification barring him to claim him exemption u/s. 54?

I will be glad if you provide me source of information.

Replies (3)

Hi, the limit is of having one house during investment is applicable for only and only sec 54F...

 

There's no such restiction for sec 54 as per IT Act,.... Under section 54, house property is considered as normal capital asset, and for any assessee there's no restriction for keeping more or less number of capital assets..... So, u/s 54, there are no such restrictions....

To claim exemption u/s 54, is it necessary that new residential house property purchased must be registered in the name of assessee? wat if he pays consideration but HP registered in name of his relative? Pls clarify.

Dear Kedar...

Answer to your question is sec 54 does not talk about no of res. house ...It only talks about investment should be made in Res. house....

and to Radhika

The Res. house should be registered in the name of the assessee who transfers the Res. house...But one choice is available the assessee can go for co-ownership....

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