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Sec 54 deduction on renovation of house
Can we take sec 54 deduction on renovation(including extension) of existing house property?
Replies (5)
at the time of selling the property you can get the benefit of indexation on improvement made to the house and can be reduced from the sale consideration. however you need to keep the documents, as it may be required by the dept if your case comes for scrutiny
No section 54 deduction for renovation expenses.
Section 54 does not allows deduction for Renovation expenses. You will be eligible to deduct the COST OF IMPROVEMENT ( Indexation benefit, if long term ) from the Full Value of Consideration at the time of selling the capital asset.
Thank you guys
1. Sec 54 only allows a claim of exemption for the purchase of a residential house and not for the renovation of residential house property.
2. In your case, expenses incurred can be claimed as improvement and indexation can be applied on the same but it cannot be considered as exemption u/s 54.
Please correct me if the above solution has an alternative view.
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