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Sec 54f

CA.Varalakshmi.M (Manager-Finance) (482 Points)

05 July 2012

Hi,

Can anyone answer this....

One of our client is an Individual with NRI Status . He sold his land for an x amount and purchased a new flat to save the capital gain arising on the transaction by claiming exemption u/s 54 F . Apart from the purchase of new asset , he has 2 residential house one situated in India and other situated abroad. Making addition of flats to 3.

For the purpose of claiming exepmtion u/s 54 F whether the residential house situated abroad should also be considered or excuded?

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2 Replies

Vikram Bhatia (CA Final) (122 Points)
Replied 06 July 2012

As per section 54F "nothing contained in inthis section shalll apply where the assessee owns more than one residential house, other than new asset , on the date of transfer of ther original asset."

so according to this the term used here is " a residential house" so it dosent matter whether it is located in India or abroad.

In your case the house property sitiuated abroad will be considered will computing no. of house owned at the date of purchase of new house property.