Exemption form section 54 of it act

Tax queries 362 views 11 replies

MUKUND

mgr ops

56 Points Joined February 2015

We had old residential property and purchased new residential property . I would like to know whether we can hold one or more residential property at the time of transfer of one residential property to claim exemption under section 54 of capital gains income tax act. any reference of case laws regarding this would be extremely helpful.

Secondly kindly elaborate what is the meaning of income derived from house property. IS this condition mandatory for claiming exemption under section 54 as my old property was not leased and was self occupied .

Replies (11)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

209798 Points Joined July 2016

I would like to know whether we can hold one or more residential property at the time of transfer of one residential property to claim exemption under section 54 of capital gains income tax act. any reference of case laws regarding this would be extremely helpful.

For exemption u/s. 54, the condition of number of properties is not applicable.

No need of any case-law, the act itself clearly specifies it.

Self occupied house is also assessed under IFHP.... with nil rental value. It need not be rented/leased for elegibility u/s. 54.

rama krishnan

12244 Points Joined May 2017

I fully concur with Mr Dhiraj view

MUKUND

mgr ops

56 Points Joined February 2015

thank you sir for your reply. we have wrongly claimed exemption under section 54f which is not applicable in our case. can we accept the mistake and claim exemption under section 54 instead of section 54f. Is this change possible to accept by the ASSESSING Officer.

Nikhil Kaushik

Fellow CA

86871 Points Joined June 2009

Do not think it is a big error that you have committed. It can easily be pressed that the exemption was sought under 54 and not 54F. even if the AO doesnt accept the claim, you can definitely expect relief at CITA level

MUKUND

mgr ops

56 Points Joined February 2015

THE ENTIRE SALE PROCEED OF SELLING AN OLD RESIDENTIAL HOUSE IS USED IN BUYING OTHER RESIDENTIAL PROPERTY . DO I HAVE TO SUBMIT CAPITAL VALUATION REPORT TO GAIN EXMEPTION UNDER SEC54 OF IT ACT.

Nikhil Kaushik

Fellow CA

86871 Points Joined June 2009

Originally posted by : MUKUND
	THE ENTIRE SALE PROCEED OF SELLING AN OLD RESIDENTIAL HOUSE IS USED IN BUYING OTHER RESIDENTIAL PROPERTY . DO I HAVE TO SUBMIT CAPITAL VALUATION REPORT TO GAIN EXMEPTION UNDER SEC54 OF IT ACT.

Valuation report for which property?

MUKUND

mgr ops

56 Points Joined February 2015

VALUATION OF OLD PROPERTY WHICH IS SOLD . IS IT REQUIRED IF FULL SALE PROCEED IS INVESTED IN NEW PROPERTY.

Nikhil Kaushik

Fellow CA

86871 Points Joined June 2009

was the property purchased prior to 2001?

MUKUND

mgr ops

56 Points Joined February 2015

OLD PROPERTY WAS PURCHASED WELL BACK IN YEAR 1960. IT WAS SOLD IN THE YEAR 2016 AND NEW PROPERTY PROPERTY WAS PURCHASED IN THE SAME YEAR TO GAIN EXMEPTION UNDER SEC54 OF IT ACT. AS ALREADY TOLD FULL SALE PROCEED IS INVESTED IN NEW PROPERTY.

MUKUND

mgr ops

56 Points Joined February 2015

I Have wrongly claimed exemption under section54 instead of section 54 in 2016

ASSESSING OFFCER HAS DISALLOWED MY CLAIM on the grounds that there is no provision in it act to make ammendment in the letter of income by making an application at the assessment stage without revising the return. he has imposed penalty under 273 (1) and issued a demand note also.

does cit has the authority to do the necesaary sanction.KINDLY ELABORATE

MUKUND

mgr ops

56 Points Joined February 2015

I Have wrongly claimed exemption under section54F instead of section 54 in 2016. ASSESSING OFFCER HAS DISALLOWED MY CLAIM on the grounds that there is no provision in it act to make ammendment in the letter of income by making an application at the assessment stage without revising the return. he has imposed penalty under 273 (1) and issued a demand note also. does cit has the authority to do the necesaary sanction.KINDLY ELABORATE .