07 April 2017
A PERSON HAS PURCHASED RESIDENTIAL HOUSE 10 YEARS AGO . HE HAS NEITHER SHOWN THE PURCHASE VALUE OF HOUSE NOR REPORTED THE RENTAL INCOME IN HIS RETURN OF INCOME . IF HE SELLS THE HOUSE NOW & PURCHASE ANOTHER HOUSE ; CAN HE AVAIL TAX EXEMPTION u/s 54 OF THE I.T ACT.
Yes he can claim the exemption u/s 54, even though he has neither shown such house nor reported any rental income in its ITR. But make sure assessee complied with all the conditions mentioned in the secton 54.
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