Re:Capital Gains u/s 54

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 February 2010 If a Resident and Ordinarily Resident of India sold his residential house in India and purchased another residential house in USA , can he claim exemption u/sec 54? He has satisfied all the conditions of sec 54.

CA Puneet Jethliya

CA Puneet Jethliya (Expert)
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10 February 2010 yes, he can claim.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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10 February 2010 The Mumbai Tribunal decided in the case of Mrs. Prema P Shah vs ITO 282 ITR (AT) 211 [2006] that property can be outside India to claim section 54. Outlined below are the facts of the case:-
Assessee an NRI, who sold her house purchased in 1983 for Rs 6 million in 1992. She bought another property in London on 150 years lease, and claimed exemption u/s 54 of the IT Act,1961. Tribunal allowed her claim.

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