the assessee has sold his residential house property and he furthers invests his amount received from sale into two flats. both the flats were attached to each other, and the assessee has make combined both of the flats. so will he be allowed to claim the deduction for such a combined flats or only for either of the flats.
11 Replies
Amir
(Learner)
(4016 Points)
Replied 13 January 2010
Dear Ravi,
U/s 54 Assessee can buy "N" number of houses...No isssues..so exemption will be allowed in respect of both the houses.
But u/s 54F, assessee can hold only 1 house other the house transferred, Therefore in this case the exemption will not be allowed at all..
CA Dhiraj Ramchandani
(CA, M. com)
(10823 Points)
Replied 13 January 2010
Section 54 allows this exemption...
Whole of the amount can be exempted from tax.. The only condition is sold property is residential and purchased too should be residential only
CA Dhiraj Ramchandani
(CA, M. com)
(10823 Points)
Replied 13 January 2010
Amir, section 54F is not allowed for sale of RESIDENTIAL PROPERTY
Max Payne
(employed)
(2574 Points)
Replied 13 January 2010
I think your query came because section 54 says the proceeds should be invested in "A residential house".
That does not mean one residential house.
See S Ananda Basappa Vs CIT (Karnataka), 309 ITR 329, 2009.
Your case is a ditto... :)
CA Mohit Agrawal
(Chartered Accountant)
(371 Points)
Replied 13 January 2010
ya it will be expemted from tax
C.Balaji
(Learner)
(1867 Points)
Replied 13 January 2010
can claim exemption U/s 54 and not u/s 54f......
Amir
(Learner)
(4016 Points)
Replied 13 January 2010
Ya Dhiraj,
U r rite my mistake, actually just before that i answered his query on sale of land so just mixed the two..
CA Dhiraj Ramchandani
(CA, M. com)
(10823 Points)
Replied 13 January 2010
Woooaaa multi performer.... grt man....
Naresh
(CA Final/ C.W.A Final)
(49 Points)
Replied 14 January 2010
Assessee can claim deduction u/s 54 for purchase or construction of residential house property.
In this given case Sec.54F in not attracted because investment can be made other than house property
Vaibhav
(CA IPCC Student)
(34 Points)
Replied 03 April 2010
Under Section 54, the assesse cannot buy "N" no. of houses.He can only invest in "ONE RESIDENTIAL HOUSE".Many authors are of the opinion that investment can be made in any no. of residential houses u/s 54 but it is not so as was decided in the case of K.C.Kaushik.
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