10 March 2016
I bought a property in 2003 and constructed a house on it in 2004. Total cost incurred was Rs 30 labs. I sold this property in 2015 for Rs 1.45cr and purchased another residential property for Rs 1.26 cr (including stamp duty).I have two other residential properties my name. Can I claim exemption from Capital gains ?
10 March 2016
Dear You can claim deduction under section 54, as there is no condition that the assessee should not have any house at the time of purcahse of new house.
Budget 2014 has introduced an amendment to Section 54 and from Financial Year 2014-15 i.e. Assessment Year 2015-16, exemption under Section 54 is available if the amount is re-invested in 1 Residential House situated in India.
10 March 2016
Dear Under section 54 there is no condition that you should not have any house This condition is under section 54f. Also section 54 exempts the capital gain invested. Since you invested 1.26 cr the amount us greater than capital gain your whole capital gain is exempted.
CAclubindia
