Section 54, 54(f)
This query is : Resolved
21 August 2011
section54
#does it is necessary to complete the construction of residential house property within three years from the date of transfer of original residential house property.
#can the exemption is available if the assessee purchases one house property and also construct another house property within stipulated period
#can the exemption is available if the assessee purchases two residential house property within stipulated period
PLZ EXPLAIN THE PROVISION OF SECTION 54F.
#does it is necessary to complete the construction of residential house property within three years from the date of transfer of original residential house property.
#can the exemption is available if the assessee purchases one house property and also construct another house property within stipulated period
#can the exemption is available if the assessee purchases two residential house property within stipulated period
PLZ EXPLAIN THE PROVISION OF SECTION 54F.
22 August 2011
#does it is necessary to complete the construction of residential house property within three years from the date of transfe
r of original residential house property.
Reply-
Here the amount sought to be utilised in construction must have been invested for the purpose is the main requirement.
Completion of construction is not the only mandatory condition. So delay having reasonable explanation can be considered.
r of original residential house property.
Reply-
Here the amount sought to be utilised in construction must have been invested for the purpose is the main requirement.
Completion of construction is not the only mandatory condition. So delay having reasonable explanation can be considered.
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22 August 2011
#can the exemption is available if the assessee purchases one house property and also construct another house property within stipulated period
Reply-
The condition is applicable under section 54F, where a new residential house is purchased to get exemption against the capital gains arising out of transfer of original LT assets other than Resi. House.
U/s 54 , there is no such restriction for purchase of a second new house.
Reply-
The condition is applicable under section 54F, where a new residential house is purchased to get exemption against the capital gains arising out of transfer of original LT assets other than Resi. House.
U/s 54 , there is no such restriction for purchase of a second new house.
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22 August 2011
#can the exemption is available if the assessee purchases two residential house property within stipulated period
Reply-
Matter of purchase of 2 residential houses have found its place in controversy so it is better to purchase / claim exemption against one resi. House only.
Reply-
Matter of purchase of 2 residential houses have found its place in controversy so it is better to purchase / claim exemption against one resi. House only.
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22 August 2011
I agree with the expert
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22 August 2011
thanx for resolving the query but i hv one more doubt regarding sec54-if the assessee has invested the capital gain which arises from the transfer of residential house property to assesse in the purchase of a residential house property within 2 yr and moreover he also invest that capital gain in the construction of another house property. what will be the treatment
23 August 2011
After having taken exemption against one new property U/s 54 it is not possible for the assessee to claim exemption in other year or against another property U/s 54 in the same year.
Recently, Bombay Tribunal has opined against the assessee in one of such cases .
However, In the cases of
D. Anand Basappa v. ITO 91 ITD 53(Bang.)
ITOV P.C. Ramakrishana(2007) 108 ITD 251(Chennai) it has been held that there is no bar on acquiring more than one residential house out of the proceeds of the residential house for claiming exemption U/s 54.
.
According to the facts and circumstances.
these decisions are based. It is advisable to take opinion of the consultant also after availing the facts to him.
Recently, Bombay Tribunal has opined against the assessee in one of such cases .
However, In the cases of
D. Anand Basappa v. ITO 91 ITD 53(Bang.)
ITOV P.C. Ramakrishana(2007) 108 ITD 251(Chennai) it has been held that there is no bar on acquiring more than one residential house out of the proceeds of the residential house for claiming exemption U/s 54.
.
According to the facts and circumstances.
these decisions are based. It is advisable to take opinion of the consultant also after availing the facts to him.
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