Section 54. w.r.t NRI

My query is that

A Non-resident Indian, has sold his house property in India. He intends to invest in a House in Australia.

1. Can he claim the benefit of Section 54, by investing the amount of Capital Gains in a house located in Australia.

2. Can he Deposit the Cap gain amt in CGAS of banks in India before filing his return.

2. Can the money from the CGAS be utilised by him to repatriate money abroad for purchase of the property. IS this allowed as per RBI/ CGAS scheme ?

thx
Regards
Soumya Nichani.
 

Replies (1)

As per the provision of sec54 and sec 54 F, amount must be in invested in India otherwise no exemption is available

 

The CIT(A) confirmed that section 54F was introduced in the Act by the Finance Bill, 1982 and the Memorandum explaining the provisions of the Finance Bill, 1982 explained that the exemption u/s.54F was granted with a view to encourage the construction of the house which naturally meant that the house was constructed in India and not outside India.

Ruling in the case of Leena J. Shah’s

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