Deduction under 54f

379 views 1 replies

I am in process of selling some shares which will result in capital gains. I want to take benefit of 54f . My situation is following:

1st house - co-owned property.

2nd house - I am a co-owner of this new property where sale of agreement is signed abt 2 years back. Property is still under construction, will be delivered in a year and sale deed is not signed yet. Bank is financing this property.

3rd house - co-owned property. Filed release deed and now its in wife's name.

Now for 2nd property , I have signed no-objection letter to builder, given notarized franked affidative to builder to remove my name from sale of agreement/sale-deed whenever it's going to sign and hence when sale deed is going to done in next 1 year it will be only in my wife's name.

Questions:

1) Doing above does it remove me from legal owner from 2nd property so that I can claim 54f. I will have only 1st property in my name.

2) Do I need to do anything else to substantiate my release of interest in 2nd property. Is notarization of affidative sufficient. Since property is not registered I can't do release deed.

Replies (1)

Dear Anurag,

In case of the second property, have you been claiming the deduction of interest on bank loan under income from house proprty ?. If not then in my opinion as the house property is still under construction, the same will not fall under the clause of house porperty and hence should not be considered for claiming the exemption u/s 54F. So In your case you have only property 1 as a residential property at the time of transfer. 

 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
06 July 2026
Accountant

Agarwal Anoop and Associates

Noida

CA Final

View Details
Company
ARTICLESHIP 10 July 2026
Article Assistant

N S Gokhale & Co

Thane

CA Inter

View Details
Company
ARTICLESHIP 08 July 2026
Articles

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
ARTICLESHIP 24 June 2026
CA Article Trainee

Rahul Dang & Associates

Pune

CA Inter

View Details
Company
Featured 24 June 2026
HEAD - AUDIT AND TAXATION

A R JADHAV AND ASSOCIATES

Mumbai

CA Inter

View Details
Company
Featured 15 June 2026
Senior Auditor

N. Dhawan & Co

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 30 June 2026
Article Assistant or Paid Assistant

VIKAS VERMA & CO

New Delhi

Others

View Details
Company
22 June 2026
Finance Manager- Chartered Accountant

Triveni Turbine Limited

Bengaluru

CA

View Details