Capital gain

This query is : Resolved

CA Sanjeev Kr Jain (Querist)
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01 June 2012 house costing 1,00,000 purchased in 1981

A person sold his house for 90,00,0000 and want to take deduction u/s 54 (45,00,000 purchase of new house), u/s 54EC (35,00,000 investment in bonds),

please calculate taxability, if advise if deduction under both section may be claimed, also quote the case law if any

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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01 June 2012 An assessee can claim exemption under more than one section. There is no such prohibition in the chapter of capital gain. Neither Section 54 nor Section 54EC specifies that exemption shall not be allowed if exemption is claimed under another section.

So the assessee can claim exemption under both the sections.