capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 July 2011 Can an individual claim exemption under section 54 if he has sold a residential house and purchased another residential house with the said money in the name of his wife within 6 months of such sale?

U S Sharma

U S Sharma (Expert)
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06 July 2011 yes, available provided the money is paid towards acquisition of new property of either himself or any family member but the payment is made from original capital gain fund by cheque/bank draft.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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06 July 2011 Yes but the condition is there. In case you are having only one house. If you are having moire than 1 house than you cannot claim any deduction except depositing u/s 54EC

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CA. Krishna K Neeraj

CA. Krishna K Neeraj (Expert)
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06 July 2011 Agreed with experts

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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06 July 2011

I disagree with Mr S S Agarwal's above view as regards the conditions of having only one residential house for Section 54.
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This condition applies for Section 54F.
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U/s 54 , Exemption is available irrespective of having 1, 2 or more residential houses by the assessee.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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06 July 2011 Whether house purchased within 6 months qualify for exemption?

It depends upon the month of sale. In case the assessee has sold his house in Feb11, then he has to invest the sum in new residential house on or before 31.07.2011 i.e. prior to his due date of filing of return.
Suppose, He purchases the house after 6 months, in Aug 11, then the amount must be deposited by him in the Capital Gain A/c with an approved bank prior to 31.07.2011.