Section 54 of Income Tax Act
Prateek Nagpal (STUDENT) (52 Points)
09 December 2010Prateek Nagpal (STUDENT) (52 Points)
09 December 2010
madhur gupta
(student/article )
(1022 Points)
Replied 09 December 2010
Sec 54 nowhere put any condition on number of houses owned
this condition is only in sec54F not in sec54
so in present case assesse is eligible to get deduction.
Raghunath Prasad
(WORKING)
(385 Points)
Replied 09 December 2010
Originally posted by : madhur gupta | ||
Sec 54 nowhere put any condition on number of houses owned this condition is only in sec54F not in sec54 so in present case assesse is eligible to get deduction. |
agree with madhur there is no limit of house property in u/s 54
CA Chirag Haraniya
(Chartered Accountant)
(902 Points)
Replied 09 December 2010
Originally posted by : madhur gupta | ||
Sec 54 nowhere put any condition on number of houses owned this condition is only in sec54F not in sec54 so in present case assesse is eligible to get deduction. |
Max Payne
(employed)
(2569 Points)
Replied 09 December 2010
Originally posted by : Prateek Nagpal | ||
The assessee has three house properties. One of the house property has been sold by the assessee during current financial year resulting in long term capital gains. The assessee is willing to invest the capital gains in another house property. Whether the assessee is eligible to claim deduction u/s 54 of the Income Tax Act 1961 keeping in mind that the assessee has already two house property Thanks with regards Prateek Nagpal |
Prima facie, yes.
You can claim section 54 benefit....
Pls ensure that the assesee used the house for residential purpose and not for running his business or carrying on profession.
Also to ensure that the property was assessed as income from House property (self occupied or otherwise) in the hands of assessee and not as AOP under section 26.
CA Saba Naaz
(Chartered Accountant)
(8487 Points)
Replied 09 December 2010
Originally posted by : madhur gupta | ||
Sec 54 nowhere put any condition on number of houses owned this condition is only in sec54F not in sec54 so in present case assesse is eligible to get deduction. |
agree with this.
gaurav salhotra
(article)
(33 Points)
Replied 10 December 2010
I wud further like to add to the question.
Under sec 54, will exemption be available for all the residential properties if we purchase or construct more than one residential property within the time limits specified in the section or the section entitles us to exemption only for one residential property ?
Max Payne
(employed)
(2569 Points)
Replied 10 December 2010
Originally posted by : gaurav salhotra | ||
I wud further like to add to the question. Under sec 54, will exemption be available for all the residential properties if we purchase or construct more than one residential property within the time limits specified in the section or the section entitles us to exemption only for one residential property ? |
Strict view is not to claim such exemptions.
Liberal view can be taken... that the reinvestment need not be in one house property.
The benefit of investing the CG in two houses was allowed in Ananda Basappa's case (Kar, 2009)...
B. Umapathy
(student)
(405 Points)
Replied 10 December 2010
ya can claim exemption u/s 54. For Gaurav question, i think so, yes.
Raju (Meger, Aquisi,Takeover)
(Audit Assitant)
(56 Points)
Replied 10 December 2010
As per section 54 of income tax act 1961you will have to sale the residence house and we can purchase only residence house it doesn't matter that how much house property you have. and long term capital should be arise.
Quantam of Exemption : amount of capital gain which you will invested in the new residence house by selling the old one with in two year after the date of transfer or year befor the transfer or if in contsruction with in three years from transfer
if the amount of caiptal gain is less than or equal to the cost of new house than entire capital gain is exempt
if the amount of capital gain is greater than cost of new house than the whole
amount of investment in new house is allowed as exmpt
Conclusion it doesn't matter in section 54 because there is no any clause regarding
the no. of hose property you hold
it is mention in the section 54F that you should not own more than one rsidence
house at the time of transfer
so that you avail the exemtion under section 54
MUKUL
(ARTICLE ASSISTANT)
(23 Points)
Replied 11 December 2010
Ramandeep singh
(CA-final,M.com (Final))
(59 Points)
Replied 12 December 2010
Bharat Khurana
(Student)
(153 Points)
Replied 13 December 2010
there is not any restriction regarding the number of house property that should be owned by the assessee for claiming deduction u/s 54. So if he purchases or construct the house in circumstances as specified u/s54 he shall be eligible for exemption u/s 54.
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"