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Exemption under sec 54

sanjay (student) (24 Points)

11 July 2008

Hi,

Will exemption under Sec54 is valid in the following case:

A person sold his house & wants to construct a new house in his son's plot with that money.

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4 Replies

(Guest)

Originally posted by :sanjay
"	Hi, Will exemption under Sec54 is valid in the following case: A person sold his house & wants to construct a new house in his son's plot with that money.	"

no deductions u/s 54. because land is not owned by the father.

Navneet (Profession) (22 Points)
Replied 21 February 2009

Originally posted by :Guest
"	Originally posted by :sanjay " Hi, Will exemption under Sec54 is valid in the following case: A person sold his house & wants to construct a new house in his son's plot with that money. " no deductions u/s 54. because land is not owned by the father.	"

CA. Ashok shah (CHARTERED ACCOUNTANT) (333 Points)
Replied 21 February 2009

Yes, assessee is eligible for exemption u/s.54, if he constructs a house on his son’s plot. The assessee will get the exemption in respect of the funds utilized for the construction of a house. He need not be an owner the plot on which house is to be constructed.

CA Sakshi (CA Practice) (309 Points)
Replied 21 February 2009

You must aquire the house in your own name for getting exemption u/s 54. If transferred asset before completion of 3 yrs period from date of acquisition then Exemption will be withdrawn.