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Deduction u/s 54

VARUN RANJAN (Student) (231 Points)

08 March 2018

If 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

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3 Replies

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

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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