Avail 20% discount on updated CA lectures for Dec 21 .Use Code RESULT20 !! Call : 088803-20003

ICICI

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Chetan (PgM)     11 September 2021

Section 54F Tax Implications

Dear All,

I am confused about the benefits available for capital gains under section 54F.

Situation:

Capital gain- I have long term gains in stocks which I want to utilize to buy a house in Bangalore.

Current residential property: I have a property in Pune which is in Rent and I report the rent earned as "Income against Property"

Question: I am confused whether I will be able to claim capital gain. 

Some articles https://www.caclubindia.com/articles/exemption-54f-income-tax-act-44074.asp point that I can.

Some places mention :Provided that nothing contained in this sub-section shall apply where the assessee owns on the date of the transfer of the original asset, or purchases, within the period of one year after such date, or constructs, within the period of three years after such date, any residential house, the income from which is chargeable under the head "Income from house property", other than the new asset.

Please guide me.

 



 3 Replies

Dhirajlal Rambhia

Dhirajlal Rambhia (SEO Sai Gr. Hosp.)     11 September 2021

It implies, that you are not allowed to buy any another house property within 1 year (or construct any within 3 years) from the date of the purchase of the new asset (over which you claimed the deduction).

CA SUDESH KUMAR GUPTA

CA SUDESH KUMAR GUPTA (Chartered Accountants)     11 September 2021

Hi

 

you mentioned that you already have one residential property and wants to utilize stock LTCG for buying another Residential property.

 

yes u/s 54 F you can buy another residential property and claim the exemption of Stock LTCG. subject to that you will not sell the second house for next 3 year from date of purchase of second house. 

Chetan

Chetan (PgM)     11 September 2021

what does this mean "Provided that nothing contained in this sub-section shall apply where the assessee owns on the date of the transfer of the original asset, or purchases, within the period of one year after such date, or constructs, within the period of three years after such date, any residential house, the income from which is chargeable under the head "Income from house property", other than the new asset"

Does it mean that I can claim benefit only when I am using the existing property of self use or can I claim benefits even when the current house is let-out.

Secondly, what is considered the date of purchase, the various options are i) day of booking, ii) day of allotment, iii) day of agreement for sale, iv) day of handover or possession or v) day of registrations?

 

 



Read more at: https://www.caclubindia.com/forum/section-54f-tax-implications-580565.asp#reply


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  


Start a New Discussion

Popular Discussion


view more »







Subscribe to the latest topics :
Search Forum:

Trending Tags