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???
5 Replies
rama krishnan
(12244 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)
(7548 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
(17264 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.
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.
Shivam RC
(Student)
(23683 Points)
Replied 08 December 2019
Agree with Kapadia Sir and Rama krishnan
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