Capital Gains - Exemption u/s 54F

This query is : Resolved

CA K.Srividhya (Querist)
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17 June 2020 If a person is constructing one house property in his own name and one house property jointly with his spouse simultaneously , can he claim exemption u/s 54F for capital gains arising on sale of land?

Whether exemption u/s 54F is allowed for the property which is constructed in his own name?

Regards.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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17 June 2020 54F will be allowed provided
* he should not own more than one house on the date of transfer of land and
* the sale should precede the construction of the new house.

CA K.Srividhya

CA K.Srividhya (Querist)
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17 June 2020 Sir,
The Proviso to Sec 54F states,

Provided that nothing contained in this sub-section shall apply where—

(a) the assessee,—

(i) owns more than one residential house, other than the new asset, on the date of transfer of the original asset; or

(ii) purchases any residential house, other than the new asset, within a period of one year after the date of transfer of the original asset; or

(iii) constructs any residential house, other than the new asset, within a period of three years after the date of transfer of the original asset.

Will the Joint construction of house property with spouse amount to construction of a house property other than new asset impacting (iii) above?

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