To qualify for the exemption claim U/s.54 is there any restriction on holding of certain number of residential property/ies? I mean, can a person holding more than 1 (say 4) residential properties claim exemption U/s.54?
Thanks.
Mohan (Audit Assisstant & Accounts Manager) (489 Points)
02 March 2013To qualify for the exemption claim U/s.54 is there any restriction on holding of certain number of residential property/ies? I mean, can a person holding more than 1 (say 4) residential properties claim exemption U/s.54?
Thanks.
ramya
(ipcc)
(24 Points)
Replied 02 March 2013
TAX PAYER MAY PURCHASE 2 HOUSES, OR HE CAN PURCHASE A HOUSE AND CONSTRUCT FIRST FLOOR OF THE HOUSE SO PURCHASED OR A PERSON CAN CONSTRUCT TWO OR MORE HOUSES,ETC. SIMILARLY,A TAXPAYER MAY SELL TWO HOUSE PROPERTIES AND HE MAY PURCHASE ONE HOUSE PROPERTY FOR THE PURPOSE OF AVAILING THE EXEMPTION.
CA.D.RAGAVAN
(CHARTERED ACCOUNTANTS)
(219 Points)
Replied 02 March 2013
If the Assessee is not owning any Residential Property he can avail Exemption U/s. 54 by Investing the Capital Gain Portion in a New Residential Unit.
If the Assessee is Owning a Residential Peoperty, he can avail Exemption U/s.54 by investing the Entire Sale Proceeds in a New Residetial Unit .
If the Assessee Owns more than one (As Stated in Your Query) Exemption U/s.54 is not available to him
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