yes, you can claim exemption u/s 54
anju sharma
(article assistent)
(42 Points)
Replied 13 December 2010
yes, you can claim exemption u/s 54
nirupama
(CA AUDIT MANAGER)
(28 Points)
Replied 13 December 2010
Dear,
As per this case you have referred is eligible for exemption under the following grounds:
a. it is a transfer of residential house
b. it is charged under the head income from house property.
c. it is of an individual
d. is it a long term capital asset? if so eligible
e. if you refer to Dr. Vinod K Singania book Para 179.2 u/s 54 he clearly explains the exemption is not binding on 1 property and selling of 1 property, similarly
NOT LIMITED TO ONE HOUSE ONLY: Exemption is not limited to acquisition of one house property. For instance, a taxpayer may purchase two house or he can purchase a house and contruct first floor of the house so purchased or a person can contruct two or more houses etc., similarly a taxpayer may sell two house porperties and may purchase one house property for the purpose of avaiing exemption.
As per Section 54 no where in the act specifies assessee should have only one house to claim exemption u/s 54.
I think this solves your question.
NIRUPAMA ACA
pisuapti jagannath
(ceo)
(33 Points)
Replied 15 November 2011
what happens if a person mistakenly , out of ignorance, keeps the sale proceeds in FD of a major scheduled bank. money from this account utised for payouts. also interest earned is taxed thro' TDS.
how untilised money is computed. from date of filing return or 2 yrs from date of sale or 3yrs from date of sale for newly constructed house.
still will it qualify for exemption. or will it be added to income for LTCG. is there any case laws to support this.
CAclubindia
