1. Can a person avail exemption under section 54F if he invests in a residential house property by selling the shares held by him?
[a]what if he is already in possession of more than one property which is put into commercial use and income of such properties is being chargeable under the head 'Income From House Property'.?
[b]If Yes, could u refer please me a case law w.r.t such decision?
[c]if No, kindly substantiate.
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Exemption under 54F
Replies (1)
a person can avail exemption u/s 54F by investing the net consideration from sale of shares provided there was long- term capital gains from its sale.Where whole net consideration is not invested only proportionate exemption shall be granted
In my opinion further the words used in the statute is' ownes not more than one residential house at the date of transfer'.The act is silent about commercial property as such.But if commercial property is taxable under house property head it is an clear indication that such property is no longer a commercial property but a residential one.This is because rent received fro m property used for shop etc is never taxed under house property head.Thus exemption u/s54F shall be denied
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