In regards to the Section 54 and 54F of the Income tax act.

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Rahul Patel

Student CA Final

23 Points Joined January 2014

Can anyone help me in solving out 1 geniune question in regards to the Section 54 and 54F of the Capital gain chapter, which is as follows:

EXAMPLE:

If one Individual holds 3 Residential houses in its name and out of that 1 residential house if it solves out,

Then whether he/she can claim deduction u/s. 54 or 54F, by purchasing one more residential house.

And if not can you please elaborate the Section 54 and 54F.

Thanking you.

Replies (3)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

208601 Points Joined July 2016

Yes, LTCG earned by selling a residential house property can be exempted u/s. 54 of IT act, by purchase/construction of another residential HP, as specified under the subsection.

Sec. 54F is applicable when any asset other than residential house property is sold.

aaogay jab

3 Points Joined January 2023

I reside in a jointly owned residential house A with my brothers, where I barely have a room to live. All of them have multiple rooms. 3 months back, i sold a jointly owned residential plot B (with my brothers). Now, i want to buy a flat/ apartment C to reside. Can I claim capital gain exemption under sec 54 with respect to B & C. If yes, can i use sale proceeds from B elsewhere & use a home loan instead for C? Thanks in advance