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54 F capital gain

rahul (afd) (134 Points)

04 November 2018

Can assesee both claim deduction
u/s 54 F
1.purchase of property
2. Construction of property
Both claim is allowable in act or not

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Mayur Patil (Article) (1276 Points)
Replied 04 November 2018

Yes, dedication available if invested in purchase / construct of property

Sec 54F available when there's LTCG from any capital asset invested in acquire or construction of 1st or 2nd residential house

Time period is same as sec 54 for construct /acquire

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rama krishnan (12234 Points)
Replied 04 November 2018

in my opinion no because 54f can be claimed for only one residential property which can be acquired either by purchase or by construction. however 54f deduction can be claimed for property where you purchased land and constructed house property over that land

Mayur Patil (Article) (1276 Points)
Replied 04 November 2018

There's words given 'Taxpayer shouldn't own more than one residential house on the date of transfer'
If taxpayer already own one house even he can invest for 2nd residential house

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rama krishnan (12234 Points)
Replied 04 November 2018

here the query is that whether he can claim 54f deduction for both construction and purchase that means one property acquired via purchase and the second one acquired via construction both amounts to 2 properties which is not allowable

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rahul (afd) (134 Points)
Replied 04 November 2018

FOR EX

PROPERTY SALE 15.05.2013 OF RS . 10 LACK

BEFORE ONE YEAR PURCHASE OF RS. 2 LACK

AFTER SALES 15.05.2013 RECONSTRUCTION IN THIS PROPETY 7 LACK

MY QUESTION IS 2 LACK AND 7 LACK IS ALLOWABLE OR NOT

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rama krishnan (12234 Points)
Replied 04 November 2018

no not allowable.. either of the one can be claimed

rahul (afd) (134 Points)
Replied 18 November 2018

Whether, in cases where the residential house is constructed within the specified period, the cost of such residential
house can be taken to include the cost of the plot also
1. Sections 54 and 54F provide for a deduction in cases where an assessee has, within a period of one year before or two years after the date
on which the transfer of a capital asset takes place, purchased, or has within a period of three years after that date constructed, a residential
house. The quantum of deduction is itself dependent upon the cost of such new asset. It has been represented to the Board that the cost of
construction of the residential house should be taken to include the cost of the plot as, in a situation of purchase of any house property, the
consideration paid generally includes the consideration for the plot also.
2. The Board has examined the issue whether, in cases where the residential house is constructed within the specified period, the cost of such
residential house can be taken to include the cost of the plot also. The Board are of the view that the cost of the land is an integral part of the
cost of the residential house, whether purchased or built. Accordingly, if the amount of capital gain for the purposes of section 54, and the
net consideration for the purposes of section 54F, is appropriated towards purchase of a plot and also towards construction of a residential
house thereon, the aggregate cost should be considered for determining the quantum of deduction under section 54/54F, provided that the
acquisition of plot and also the construction thereon, are completed within the period specified in these sections.
Circular : No. 667, dated 18-10-1993.