Capital Gain - sec 54

Ans 1 since u/s 54 ther is no expressed restriction abt availability of  exemption to NR....in ma opinion  u may get the benefit.

Ans 2 In my view i think since evn u are a non residnt and  getting d benefit u/s 54 bt will hve to purchase or construction  in INDIA since ur original asset whic u sold was in india  so on this basis u need to buy/construct in india only. n if u violate any conditon mentioned under sec 54 thn ull loose d exemption n will hve to pay tax on it.

Thanks Tushar.

However, regarding your Ans 2, pls clarify where is it stated that since the original asset was situated in India, the new asset is also required to be situated in India?

Reason -

Sec 54 uses the words"Long term Capital Gain arising frm transfer of Capital Asset being building or land appurtanent therto or residential house property income of whose is chargeable  under the head INCOME FROM HOUSE PROPERTY'    (for original asset sold)

its referring to house property income in india n since NR's income from House prprty frm Foriegn house in nt taxable in india so ull hve to buy /construct in india only for getting exemption under sec 54.

The Mumbai Tribunal judgment in case of Mrs. Prema P Shah vs ITO 282ITR (AT)211 [2006] is significant in this regard. In fact , this order of Tribunal not only openly confirmed that the exemption u/s 54 is allowed even for purchase of residential house outside India , but also stated that in UK , even lease for 150 years can be considered purchase for the purpose of section 54 .