manik (ca in practice) (420 Points)
29 May 2011
one of our clients had sold a peice of land for 15 lakhs on 01.05.2011 he had also bought a peice of land on 01.04.2011, now he had constructed a boundary wall on that peice of land and a small room from the sale proceeds of the above sale, my question is will he be able to get the benefit of sec. 54f or any other section???
pls advice!!!
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 29 May 2011
yes benefit will be given under section 54
Suresh Prasad
(www.aubsp.com)
(15630 Points)
Replied 29 May 2011
| Originally posted by : manik | ||
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one of our clients had sold a peice of land for rs.15 lakhs on 01.05.2011 he had also bought a peice of land on 01.04.2011, now he had constructed a boundary wall on that peice of land and a small room from the sale proceeds of the above sale, my question is will he be able to get the benefit of sec. 54f or any other section??? pls advice!!! |
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In my opinion .........!!!!!!!!!!!!!
As per Sec54F(1) If the assessee has, within a period of one year before or 66[two years] after the date on which the transfer took place purchased, or has within a period of three years after that date constructed, a residential house then he can claim exemption upto the amount invested thereto form Sale proceeds.
In your client Case land was purchased before sale i.e. 01.04.11..............!!!!!!!!!!!!!
As per Circular No. 667, dated 18.10.1993 the cost of land is an integral part of the cost of the residential house, whether purchased or constructed.
However, client construct residential house after 01.05.11 but before 30.04.14 then he can be benifited by sec 54F.
Therefore if your client invested all sale proceeds then he can claim..!!!!!!!!!!!!!!!
indresh
(engineer)
(25 Points)
Replied 29 May 2011
In a similar case if sale proceeds of the plot are recieved in instalments before final registration is made and the same amount is invested in paying instalments of under construction property (again before registration), will the beenfit of section 54 be applicable?
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 29 May 2011
| Originally posted by : Suresh_Smiter | ||
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Originally posted by : manik one of our clients had sold a peice of land for rs.15 lakhs on 01.05.2011 he had also bought a peice of land on 01.04.2011, now he had constructed a boundary wall on that peice of land and a small room from the sale proceeds of the above sale, my question is will he be able to get the benefit of sec. 54f or any other section??? pls advice!!! In my opinion .........!!!!!!!!!!!!! As per Sec54F(1) If the assessee has, within a period of one year before or 66[two years] after the date on which the transfer took place purchased, or has within a period of three years after that date constructed, a residential house then he can claim exemption upto the amount invested thereto form Sale proceeds. In your client Case land was purchased before sale i.e. 01.04.11..............!!!!!!!!!!!!! As per Circular No. 667, dated 18.10.1993 the cost of land is an integral part of the cost of the residential house, whether purchased or constructed. However, client construct residential house after 01.05.11 but before 30.04.14 then he can be benifited by sec 54F. Therefore if your client invested all sale proceeds then he can claim..!!!!!!!!!!!!!!! |
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Agreed wit dis view.
akash gupta
(article)
(132 Points)
Replied 29 May 2011
yes he can provided theconstruction should be treated as residential house...i.e. what costitute residential house should be checked here otherwaise he can not take the benefit of sec. 54
ankur bansal (CA Final)
(student)
(124 Points)
Replied 29 May 2011
section 54 is ready for him ............
Rajnikant Vadigoppula
(CA, CS And CMA Final)
(919 Points)
Replied 29 May 2011
i agree with above u can claim u/s 54 itself
RAHUL CA-FINAL CS-FINAL M.com
(student)
(66 Points)
Replied 29 May 2011
In my opinion .........!!!!!!!!!!!!!
he can claim d benefit....
Tax pundit
(FCA, AICWA,LL.B., DISA)
(106 Points)
Replied 30 May 2011
Gourav Kapoor
(CA Final Student)
(2977 Points)
Replied 30 May 2011
| Originally posted by : Shiv Shankar | ||
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YES HE CAN CLAIM THE BENIFIT UNDER SEC.54 |
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C.Balaji
(Learner)
(1867 Points)
Replied 31 May 2011
Sec 54 - Transfer of Residential house and purchase or construction of Residential house... Here, Land is transferred and therefore sec 54 does not get attracted....
Sec 54F - Transfer of Capital Asset other than Residential house and purchase or construction of Residential house...
Here, Land is transferred and the room constructed should be a Residential house for claiming exemption u/s 54F... Moreover, entire sale proceeds should be invested to get exemption of entire capital gains orelse only Proportionate amount will be allowed as exemption... the amount can be deposited in Capital Gains account scheme before the date of filing of return.
CAclubindia
