Sunil (Trader) 01 September 2015
There are 2 long term assets eligible for deductions:-
1) Deduction u/s 54 on sale of Residential house. The amount of capital gains to be reinvested in a residential house.
2) Deduction u/s 54F on FULL sale consideration of other long term capital asset (land).
The question: Can the capital gain of No. 1 above and the full consideration of No. 2 above be reinvested into one single property of a value little higher than both exemptions u/s 54 and 54F put together.?
Eg. If after indexation the capital gain on No.1 is Rs.20 lkhas and the full sale consideration of No. 2 is 25 lakhs, can one single house of Rs.50 lakhs be purchased and claim Rs.20 lakhs u/s 54 and 25 lakhs under sec 54F?
S. Shiroor (Others) 01 September 2015
The Mumbai Special Bench's decision in a case was
so 54 & 54F can used for one house provded the taxpayer does not have another house and the House newly purchased kept for at least for 3 yeaars other wise the deductions will be reversed.
Kiran. S (CTO) 01 September 2015
Assessee can claim exemption under both Sec. 54 & 54F for investment in same house .
ITAT HYDERABAD BENCH ‘A’ Venkata Ramana Umareddy versus Deputy Commissioner of Income-tax IT Appeal No. 552 (Hyd.) of 2012 [ASSESSMENT YEAR 2008-09] Date of Pronouncement- 18.01.2013