Exemption u/s 54 reversal

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 August 2012 The assesee claimed deduction u/s 54 in AY 2011-12 by purchasing new house. but the some portion of new house was sold in FY 2011-12. What are the consequences and how the deduction u/s 54 will be reversed in AY 2012-13. Another issue is that how will the provision of sec. 234 A/B/C take effect.

CA M Indani

CA M Indani (Expert)
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27 August 2012 its taxable when flat is / part is sold ...i.e. in fy 11-12 its taxable..n 234asc will apply for ay12-13 same as its 12-13/s income...

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Querist : Anonymous

Querist : Anonymous (Querist)

27 August 2012 thanks sir for solving the query. another small doubt, suppose only 25 % portion of house is sold & in that case do we reverse the proportionate amount viz. only 25 % of exemption availed in earlier year is to be reversed or the whole exemption amount is to be reversed.

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CA M Indani

CA M Indani (Expert)
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02 September 2012 proportionate amount will be disallowed....its as equal to under investment of capital gains...

Querist : Anonymous

Querist : Anonymous (Querist)

03 September 2012 Thanks a Lot Mr. Indani.