VARUN RANJAN (Student) (231 Points)
08 March 2018If I construct an additional floor on my existing home, using the proceeds of sale of land (Capital Gain), would I be allowed the deduction u/s 54 (Construction of Residential House Property?)
If yes, under what rules?
As per my understanding, the additional floor should also be construed as a new residential house-property.
Expecting a response.
Thanks & Regards,
Varun Ranjan
Rakesh Bandal
(Self Employed and Agriculture)
(1349 Points)
Replied 08 March 2018
According to me
applicable section to your case is section 54F
if you construct addition floor on existing house you will not get benefit of section 54F
if added floor can be sold seperatly and plan is approved accordingly you can get benefit
subject to conditions mentioned in section 54F of number of owership of property
VARUN RANJAN
(Student)
(231 Points)
Replied 09 March 2018
Dear Sir,
As per a judgement dated 1981,U/s - 54 house property does not mean complete independent house, it includes units also.
Does this also apply to Sec - 54F?
Rakesh Bandal
(Self Employed and Agriculture)
(1349 Points)
Replied 10 March 2018
I am not aware of Judgement which you have mentioned but , judgement of the court should be compared with facts and conditions of each case which may very from case to case
CAclubindia
