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Direct tax

Tejashwini (Professional) (112 Points)

22 July 2014

The Assessee has sold (1) 0ne flat which was self occupied (2) land . Now he has started the construction of a single residential house using the sale proceeds from (1) & (2). Here he wants to claim both (1) & (2) u/s : 54 & 54F respectively.
My query is
Whether the assessee can claim both the above (1) & (2) ie Sec 54 & 54F towards the construction of the single residential house.

Would appreciate if you could give a valuable feedback

Thanks in advance

Tejashwini Ram

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2 Replies

CA Dauzi Pathan Imran Khan (Chartered Accountant in Practise) (1678 Points)
Replied 22 July 2014

Sale proceeds from Flat can be used in acquiring residential property and thus he can avail exemption U/s 54.

Sale proceeds from Land (which is not Residential property) can be used in resindential property and thus he can claim u/s 54F too.

There is no expressed/ implied provision making 54 and 54Fmutually exclusive. The only condition is The exemption u/s 54F shall be available only when the assessee does not own more than 1 Residential House Property on the date of transfer of such asset exclusive of the one he has bought for claiming exemption under section 54F.

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