18 June 2009
I have a house property, & during the P.Y. I have a LTCG on sales of shares without paying STT i.e. outside stock exchange.Now wether I can avail exemption u/s 54 F by investing the consideration in reconstruction in my existing house or acquiring a new house property.
Wether there is any way other then investing in bonds so that I can avoid tax on sale of shares.
19 June 2009
Sir, As far as I am concerned the proviso to Sec 54 F says that "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; and
(b) the income from such residential house, other than the one residential house owned on the date of transfer of the original asset, is chargeable under the head Income from house property.]"
So in the above said proviso of 54 F (a) (i) says that the assesse sholud not own even a single house at the time of transfer wether I am right or not, & If I am right then the in the given case assesse would not avilable to claim the deduction.
CAclubindia
