As per Section 54 i get an exemption if i purchase a new residential house property,
My query was whether I can let out such House Property and if I can Let it out whether it can be used for Commercial purpose. Is it necessary for the property to be a residential property?
| Originally posted by : neha | ||
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As per Section 54 i get an exemption if i purchase a new residential house property, My query was whether I can let out such House Property and if I can Let it out whether it can be used for Commercial purpose. Is it necessary for the property to be a residential property? |
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Hi Neha,
You can let out such property but only for residential purposes and not for Commercial purposes...as it is clearly written in sec 54 that exemption is only availaible for purchase or construction of Residential house property......
yes it is important that it should be a residential property but it does not make a diffrance that you let out that property for commercial purpose..still you will get deduction u/s 54
| Under Section | Allowed Assessee | Conditions to be satisfied | Quantum of exemption |
| 54 | Individual/HUF |
1. Transfer should be of a residential house
income of which is chargeable under the head ‘Income from house property’. 2. It must be a long-term capital asset. 3. Purchase of another residential house should be within one year before or 2 years after, or construction should be within three years after the date of transfer. |
Actual amount invested in new asset or the capital gain whichever is less. |
hi neha
I studied about this and found out that for taking exemption you cannot let out your house for any purpose.
you can read about this in Direct tax ready reckoner written by Singhania Sir. and i m sorry for my last comment which is wrong....
CAclubindia
