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Exemption u/s 54

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SVSHAH

CA Final

122 Points Posted on 26 January 2012

Can Assessee claim exemption u/s 54 by purchasing TWO Residential House property from the Long Term capital Gain derived from sale of one house property held?

Investment of only ONE House property is allowed to be claimed under sec.54 of IT act and ignoring the SECOND House Property purchased in above case.

Replies (1)

Z

Tax Consultation (US and India)

2970 Points Posted on 26 January 2012

It depends on the facts of the case

If all those residential units can be modified to unite and make it a single residential house property then assesse can claim ecemption having regards to decision made in (CIT v D. Ananda Basappa ( 2009 ) 20 DTR 266 (Kar)).

However if the house properties are scattered and can not be united then the exemption will be available to only one house property unit.

Cite: ITO Vs. Ms. Sushila M. Jhaveri

details in

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