CA Vishal kapoor (Partner) (320 Points)
29 December 2010
Sunshine
(Helping All)
(10575 Points)
Replied 29 December 2010
sec 54 is applicable fr capital gain arising out of sale of residential house propert only (not commercial)...
so for 1st house exemption can be claimed u/s 54 and for 2nd u/s 54F
NIKIT SHETH
(Chartered Accountant)
(55 Points)
Replied 29 December 2010
I Think Sec. 54 is applicable.... Deduction can be claimed u/s 54 for both the houses since there is no condition regarding that the assessee should hold only one house at the time of transfer u/s 54. Since investment is made in New HOUSE Property, Only Sec. 54 is Applicable and not Sec. 54F. As u/s 54F capital gain arising on transfer of capital asset other than House property and proceeds of the same are further invested in house property then deduction can be claimed u/s 54F
A G Vishal Kirthic
(Chartered Accoutant)
(236 Points)
Replied 29 December 2010
Dear Friends,
Mr. A is eligible is claim to exemption u/s 54 against long term capital gain arising from transfer of House A. The same does not qualify for exemption u/s 54F as it deals with transfer of long term capital asset other than residential property.
As referred by you, House B is used for the purpose of business, the sale of which falls under the purview of 50A (Depreciable asset deemed to be a short term capital asset irrespective of its holding period being exceeding 3 years). The gain arising on transfer of the said asset is short term in nature which does not qualify for any exemption. Accordingly, the STCG is to be calculated as follows:
|
1 |
WDV of the respective block as at the opening
|
A |
xxx |
|
2 |
Add: Additions |
B |
xxx |
|
3 |
Subtotal |
C |
xxx |
|
4 |
Less: Sale Consideration |
D |
xxx |
|
5 |
Short Term Capital Gain(If D>C & the block ceases to exist) |
E |
xxx |
|
6 |
Short Term Capital Loss(If D<C & the block ceases to exist) |
F |
xxx |
|
7 |
WDV before Depreciation(If D<C & the block continues) |
G |
xxx |
Rajesh
(student)
(76 Points)
Replied 29 December 2010
According to Sec 54 exemption can cliam for both the houses related to purchase of new house but in case of sec 54f denotes that long term capital gain other than residential house property to get exemption u/s 54f should invest in residential house property only.
sanjay
(FCA)
(322 Points)
Replied 29 December 2010
Deduction for both the houses would be available
1st house u/s 54 and 2nd u/s 54 F as Ist house is used for residential purpose (which is a pre condition u/s 54)
M .K. Jha
(CA Final)
(484 Points)
Replied 29 December 2010
Dear Vishal,
1. If property which is used for business shall depreciable and used for Business Purpose
then Capital gain arises on such property should be Short term Capital Gain and exemption u/s 54 shall not be allowable.
Therefore, Exemption allowable only on such property which is used for Residential purpose only.
2. If property which is used for business shall not be depreciable
then Capital gain arises on such property should be LONG TERM CAPITAL GAIN and exemption u/s 54 shall be allowable on both property.
Therefore, Exemption allowable only on both property which is used for Residential purpose and business purpose.
CA Vishal kapoor
(Partner)
(320 Points)
Replied 29 December 2010
Thanks 2 all for ur valuable replies..
I want 2 know that How we bifurcate the new house in our return to claim the exemption u/s 54& 54F?
DR GAURAV GUPTA FCA, FCS, LL.B
(COMPANY SECRETARY)
(1046 Points)
Replied 29 December 2010
SEC 54 WILL BE CLAIMED AGAINST BOTH THE HOUSE
Pawan Kr. Tomar
(CA)
(169 Points)
Replied 30 December 2010
Exeptions u/s section 54 will be applicable for both the house.
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 30 December 2010
Any long-term capital gain arising to an individual or an HUF, from the transfer of any asset, other than a residential house, shall be exempt if the whole of the net consideration is utilised within a period of one year before or two years after the date of transfer for purchase, or within 3 years in construction, of a residential house.
If, however, only a part of net consideration is so utilised, the amount of exemptionshall be equal to:
Amount of Net consideration
Conditions
Where an individual or HUF transfers any long-term capital asset, not bes thing aresidential house, and invests the net sale proceeds to acquire a residential house, the exemption u/s 54F is available provided following conditions are satisfied.
1) The asset tranferred is a long-term capital asset.
2) The asset is transferred by an individual or HUF.
3) The asset tranferred is any capital asset other than a residential house.
4) The assessee has within the specifed period purchased or constructed aresidential house.
5) The assesse does not own more then one residential house on the date of transfer of the original asset, exclusive of the one purchased for claiming exemptionunder this section i.e. section 54F
6) If the amount cannot be so utilised before filing the return, then inorder to avail of the exemption, it may be deposited under the Capital gains accounts scheme 1998 before the due date for filing the return.
Specified period
1) one year before, or 2 years after the date on which the tranfer took place, for purchase of a house.
2) A period of 3 year after the date on which the tranfer took place, for constuction of a house.
3) If a tax-payer transfers the newly acquired residential house within a period of three years of its purchase or construction, then the amount of capital gains arising from the tranfer of the original asset which was not charged to tax, shall become taxable as long-term capital gains or the year in which the new asset is trasferred.
Important Notes
This concession will not be available in case where the assessee owns more than one residential house on the date of the transfer of the original asset. In other words, the deduction can be availed, even if the assessee owns one residential house on the date of transfer of the original asset. However, if the assessee purchases within two years of constructs within three years after such date any residential house (other than the new asset) the income from which is chargeable under the head ‘Income from House Property’. the amount of capital gains exempted under this section, shall be taxable as ‘long-term capital gains’ in the yearin which such other house is purchased or constructed.
Net condideration means the full value of the consdieration as a result of the tranfer of the capital asset minus any expenditure incurred wholly or exclusively in connection with such tranfer.
own more than one residential house (w.e.f. 2001-02)
Pradeep Patankar
(IFRS ( London))
(289 Points)
Replied 30 December 2010
G.Venkata Reddy
(Manager-Finance)
(21 Points)
Replied 07 March 2011
Dear Sir,
I have claimed exemption U/s 54F by purchasing new residential house with in said period, but I sold the same house after one year and I bought another residential house immediatly. My question is here shall exemtion gvien under first case will be revert or will continue if I hold new house for more than three years.
Pankaj Arora
(Learner)
(3134 Points)
Replied 07 March 2011
Yes this exemption will continue if you hold new house for more than three years or sell after three years it will be LTCG. firstly you could take benefit of cost inflation index.
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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