CA Parth Verma (NYU Stern Alumni ) (90 Points)
30 July 2011A QUERY REGARDING EXEMPTION U/S 54
A ASSESSEE SOLD A BUNGLOW AND 3 NEW FLATS UNDER WHICH 2 FLATS ARE HAVING SINGLE REGISRTY AND 3RD FLAT HAS DIFFRENT REGISTRY.
THE 3 FLATS ARE SITUATED ON SAME FLOOR. TWO ARE ADJACENT AND 3RD AFTER LIFT.
CAN ASSESSEE CLAIM DEDUCTION U/S 54.
PLEASE SOLVE QUERY WITH RELEVANT CASELAWS.
THNKS IN ADVANCE
CA PARAS BAFNA
(Practising CA )
(33428 Points)
Replied 01 August 2011
SECTION 54 IS AVAILABLE IN RESPECT OF LONG TERM CAPITAL ASSETS.
YOU HAVE MENTIONED THAT HE HAS SOLD 3 NEW FLATS - I ASSUME THAT NEW MEANS NOT OLDER THAN 3YEARS. HENCE 54 WILL NOT BE AVAILABLE.
IF BANGLOW IS A LONG TERM CAPITAL ASSET -CAPITAL GAINS ARISING OUT OF IT MAY EXEMPT U/S 54.
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