Joshy Tharian (Audit Manager) (52 Points)
06 December 2011Dear friends
I would like to know whether exemption U/S-54/54F can claim from investment in property in forein country aganist income earned in india. What is the procedure for claimimg the deduction and convert the capital gain in india to forein exchange asset. pls help me in this regard with the help of relevant laws
Prof. Bajaj
(Author Mentor Motivational Speaker Wealth Planner)
(7375 Points)
Replied 11 December 2011
The house property needs to be in India to avail of the capital gain tax benefit.
C.Balaji
(Learner)
(1867 Points)
Replied 20 December 2011
I have seen somewhere...
There are two decisions contradicting each other... If possible i will post the decisions too...
Till now its not clear i guess...
Z
( )
(2960 Points)
Replied 22 December 2011
C.Balaji you are prolly talking about this
Income Tax Act, 1961 applies only to India.
Leena J Shah v. ACIT (2006) 6 SOT 721 (Ahd)
Hence Exemption can not be availed
contra
Prema P Shah v. ITO 100 ITD 60 (ITAT) (Mum.)
section 54 does not impose any bar on acquisition outside India.
completely ignore the following text (just a babble)
Just my opinion , The purpose of the exemption was to create more housing facility in India as there is need for more house till date, people stay on street and huts why should IT ACT give exemption for constructing home abroad?
"Income Tax Act, 1961 applies only to India."
Yes, so how about exempting income which accrue arises outside India for Ordinary residents in India?
CAclubindia
