Sec 54 F - purchase or Residential house outside India

Tax queries 907 views 4 replies

karthikeyan.v

Chartered Accountant

523 Points Posted on 19 February 2010

Sec 54 F - Capital gains on transfer of a long term capital asset- can be claimed as exemption if a residential house is purchased or constructed with in the time limit--- the assessee has purchased the new house outside India, will he be able to get the exemption? Thanks you in anticipation for partipating in the discussion- please refrer to Direct tax laws by Dr. Vinod. K Singhania, (Page 535),(Para- 183.1-3)before answering----- how can an exemption be given if the purchase is made in a country outside india-----?

Replies (4)

Ameet

1678 Points Posted on 19 February 2010

Sorry i have not gone through the example but,

Benefit of exemption u/s. 54F can be claimed if new asset is purchase in india or outside india also.

C.Balaji

Learner

1867 Points Posted on 19 February 2010

Mr..Karthikeyan...

According to me...The exemption u/s 54 F will be allowed - even if the Res. house is purchased outside india.....I have studied somewhere....I think the Act does not restricts this......

CA. Ashok shah

CHARTERED ACCOUNTANT

333 Points Posted on 19 February 2010

It may be in India or outside India, exemption u/s. 54F is permitted. No restriction in law.

Max Payne

employed

2574 Points Posted on 19 February 2010

Yes, agree with above answers, the assessee need not invest in India..

However, you should also consider

1. If the original asset transferred is liable to tax in India (which i assume, yes), on a combined reading of provisions of section 4, section 6 and section 9.

Pls see in detail section 9(1)(i), to understand what i mean (whthr deemed to accrue or arise in India)

2. Whether the assessee owns more than one residential house, as on the date of transfer of original asset, including within and OUTSIDE india.