Pankaj Arora (Job) (150 Points)
24 June 2011
Dear All
U/s 54 assessee gets exemption if he purchases any residential house 1 year before or 2 year after or if he construct a house within 3 years from the date of transfer. But it is nowhere specified that on whose land the the construction is to be done or whether or not cost of land will be included in the cost of construction or not.
Thanks
@*CS Siddharth Bumb. *
(B.Com, CA Final, CS )
(5270 Points)
Replied 24 June 2011
cost of land will be treated as construction... construction of house property includes land,,
Sunshine
(Helping All)
(10575 Points)
Replied 24 June 2011
cost of land is included in the cost of construction only...there cant be a builidng wothout a land
Sandeep Surana
(Practicing Chartered Accountant)
(156 Points)
Replied 24 June 2011
Mr. Sunshine is right
"Cost of Land include in a cost of Construction"
kartik Goenka
(chartered Accountancy)
(239 Points)
Replied 25 June 2011
the land is ofcourse own by the Assessee and construction includes Cost of land. land can be treated as part of construction.
Pankaj Arora
(Job)
(150 Points)
Replied 25 June 2011
Dear All
Thanks for the reply. But if the land is already owned by the assessee then construction of a building on that land will be allowed as exemption only and if the land is purchased 6 months before the date of sale then will the exemption be still available.
Sunshine
(Helping All)
(10575 Points)
Replied 25 June 2011
i think yes..even if the land is owned, the cost of construction of the building can qualify for exemption....
Vijay
(Adamo Studio)
(2112 Points)
Replied 26 June 2011
Yes evenif the land is preowned exemption is allowed for construction also.
Sandeep Surana
(Practicing Chartered Accountant)
(156 Points)
Replied 01 July 2011
| Originally posted by : Vijay Manwani | ||
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Yes evenif the land is preowned exemption is allowed for construction also. |
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Yes, I am also agree with Mr. Vijay Manwani
Pankaj Arora
(Job)
(150 Points)
Replied 02 July 2011
rohit rathor
(ca final)
(21 Points)
Replied 04 July 2011
i have question
an assessee has sale freehold property and purchase a lease hold property with 83 years lease can assessee has claim exemption u/s 54
Sandeep Surana
(Practicing Chartered Accountant)
(156 Points)
Replied 04 July 2011
Dear Mr. Rohit, if an assessee has sale freehold property and purchase a lease hold property with 83 years lease then he also allowed to claim exemption u/s 54 (for referance please read the below note) :-
NOTE :-
For the purpose of Section 54 the House Property is a "Residential house property" whose income is taxable under the head "Income from house Property" **
**Condition for Income taxable under the head "Income from house Property" :-
Deemed Owner also be taxable under this head. If a person taking a property on lease for not less than 12 Year is also be deemed to be owner of property.
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