Section 54 of IT Act

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7 Points Posted on 25 April 2021

Hi,

I own three three residential flats. Out of which I want to sell one residential flat and buy a new residential flat out of Long Term Capital Gain amount. Can i claim exemption under Section 54 of IT Act for the above investment (Because Section 54 does not restrict owing multiple properties when selling one of the properties)?

Can anyone please clarify?

Regards

K M Ganes

Coimbatore

 

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On 25 April 2021 at 19:25 Report
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Quick Summary
This discussion clarifies whether an individual owning multiple residential flats can claim exemption under Section 54 of the IT Act when selling one flat and purchasing a new one with the capital gains. The consensus is yes, as the restriction on owning more than one house applies to Section 54F, not Section 54. Participants also briefly touched upon the time limits for purchase or construction under Section 54.

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25 Points Posted on 25 April 2021
Yes, you can claim an exemption under section 54. The restriction of "owning not more than 1 house" is under section 54F and not under section 54.
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On 25 April 2021 at 19:39
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7 Points Posted on 25 April 2021

Thanks Mr. Ayush. 

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On 25 April 2021 at 19:50
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Chartered Accountant
24588 Points Posted on 25 April 2021
Yes Section 54 can be availed
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On 25 April 2021 at 19:54
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7 Points Posted on 25 April 2021

Thanks a lot Mr. Souray, for your clarification.

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On 25 April 2021 at 20:28
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Chartered Accountant
24588 Points Posted on 25 April 2021
Your welcome
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On 25 April 2021 at 21:08
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Profession Business
28246 Points Posted on 26 April 2021
But there is a period within which you hv to purchase.
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On 26 April 2021 at 09:17
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7 Points Posted on 26 April 2021

Thanks Mr.Mukerjee. Yes, I am aware of time norms within which to purchase / construct. 

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On 26 April 2021 at 09:56
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Profession Business
28246 Points Posted on 27 April 2021

That sounds better.

Otherwise the very essence of Sec 54 goes for a toss

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On 27 April 2021 at 11:21

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