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Sec 54

C.Balaji (Learner) (1867 Points)

16 December 2010

Dear Friends...

A (owner) owns a Land and Building (Res. House)... He sold the Building and Part of Land to B (Retaining some piece of land - sale deed)...He constructed I floor on that Building before 3years from the date of sale... He invested the amount in CG scheme... He claimed exemption u/s 54.... Can he claim or not???

Sec 54 - Transfer of Res. house and Investment in Purchase or construction of Res. house....

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3 Replies

M .K. Jha (CA Final) (484 Points)
Replied 16 December 2010

Dear Balaji,

Please Clear your question.

your mean Land has two identical unit one is sold and second also use for construction of floor.

one floor sold but nw also a owner of other floos.

Sunshine (Helping All) (10575 Points)
Replied 16 December 2010

i think yes he can claim exemption u/s 54..

C.Balaji (Learner) (1867 Points)
Replied 18 December 2010

Dear Friend....

Only a part of the land is sold with Building(superstructure)... i.e.50% share in land is sold along with the building retaining another 50% land.... If he builds the First floor can he claim exemption u/s 54??? Whether it will be allowed??? Is there any Case law supporting this or opposing this???