Section 54 of Income Tax Act

Page no : 2

Mansi (student) (21 Points)
Replied 10 March 2012

If the assessee sell a long term capital asset (land) and keeps the amount in a capital gain account scheme for 3 years can he use the amount for any purpose other than buying a residential property after 3 years??

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Ankit Agarwalla (CA) (281 Points)
Replied 11 March 2012

Originally posted by : Mansi
	If the assessee sell a long term capital asset (land) and keeps the amount in a capital gain account scheme for 3 years can he use the amount for any purpose other than buying a residential property after 3 years??

Yes he can...but the original cap gains that was exempt would now be taxable at the end of 3rd yr since the money was not utilized for specified purpose.

CA SACHIN VIJ (Chartered Accountant) (112 Points)
Replied 12 March 2012

You are eligible to get benefit deduction u/s 54 of IT Act.

sairam ( CA -FINAL) (46 Points)
Replied 16 July 2012

If any property sold by HUF and also purchased by HUF as per section 54 what will do ? my doubt is whose hands taxable above capital gain property please send your information if its known .

Phantom (None) (26 Points)
Replied 27 July 2012

When is a property considered acquired u/s 54? Consider, a person acquired a property (residential land) in 2007 and registered it in 2011 and sold it off in 2012. In 2012, this person purchased another property (residential house). Does the provision u/s 54 apply?