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Deduction u/s 54

Naimish (Myself ) (42 Points)

06 December 2019

One person has sold his house.
He has purchased another house with copartner for deduction u/s 54F.
Is he eligible for full deduction or partial deduction???

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5 Replies

Pawan Vemula (284 Points)
Replied 06 December 2019

No Sir Not Eligible For Full Deduction

rama krishnan (12234 Points)
Replied 06 December 2019

He's eligible to claim deduction under section 54 to the extent of his share in the house property purchased with partner. for example if the capital gain on sale of house is 50 lakhs and his share in the house property purchased is 25 lakhs, then only 25 lakhs can be claimed as deduction

Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 06 December 2019

Where an assesse sells a house and purchased another house ,then he can claim deduction only under section 54 and not 54F.

Kapadia Pravin (17249 Points)
Replied 06 December 2019

I agree with Ramakrishnan. In addition ......

As per example given ---

Balance 25 lakhs of capital gain - he can invest into REC NHAI bonds under section 54EC (within 6 months from date of sale of house.)

Maximum investment limit under 54EC bonds is 50 lakhs.

So full LTCG of 50 lakhs will be exempt.

Section 54F is not applicable.