Section 54 of IT Act

Tax queries 177 views 8 replies
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7 Points Joined 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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25 Points Joined July 2017
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 Joined April 2021

Thanks Mr. Ayush. 

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On 25 April 2021 at 19:50
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Chartered Accountant
24588 Points Joined November 2019
Yes Section 54 can be availed
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On 25 April 2021 at 19:54
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7 Points Joined 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 Joined November 2019
Your welcome
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On 25 April 2021 at 21:08
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28018 Points Joined May 2017
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 Joined 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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28018 Points Joined May 2017

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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