Exemption u/s 54

Tax queries 508 views 1 replies

NYU Stern Alumni

90 Points Joined January 2010

A QUERY REGARDING EXEMPTION U/S 54

A ASSESSEE SOLD A BUNGLOW AND 3 NEW FLATS UNDER WHICH 2 FLATS ARE HAVING SINGLE REGISRTY AND 3RD FLAT HAS DIFFRENT REGISTRY.

THE 3 FLATS ARE SITUATED ON SAME FLOOR. TWO ARE ADJACENT AND 3RD AFTER LIFT.

CAN ASSESSEE CLAIM DEDUCTION U/S 54.

PLEASE SOLVE QUERY WITH RELEVANT CASELAWS.

THNKS IN ADVANCE

Replies (1)

Practising CA

33428 Points Joined April 2009

SECTION 54 IS AVAILABLE IN RESPECT OF LONG TERM CAPITAL ASSETS.

YOU HAVE MENTIONED THAT HE HAS SOLD 3 NEW FLATS - I ASSUME THAT NEW MEANS NOT OLDER THAN 3YEARS. HENCE 54 WILL NOT BE AVAILABLE.

IF BANGLOW IS A LONG TERM CAPITAL ASSET -CAPITAL GAINS ARISING OUT OF IT MAY EXEMPT U/S 54.

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