Exemption u/s 54

Tax queries 624 views 5 replies

Kindly let me know wether exemption u/s 54 is available when we sold out property which is partly  residential and partly commerical property.

If yes how much we can claim as a exemption??

Thanks in advance.

Replies (5)

Dear Mini,

You can claim exemption u/s 54 only for the residential part of the immovable property.

Instead of investing in a residential house property to claim exemption u/s 54 only for the residential part, you can purchase bonds of NHAI or RECL  for a lock in period of 3 years and can claim exepmtion u/s 54 EC for both residential and commercial part of the immovable property.The maximum amount of investment is 50 lacs in a financial year.

 

Regards,

Fatema.

Originally posted by : FATEMA

Dear Mini,

You can claim exemption u/s 54 only for the residential part of the immovable property.

Instead of investing in a residential house property to claim exemption u/s 54 only for the residential part, you can purchase bonds of NHAI or RECL  for a lock in period of 3 years and can claim exepmtion u/s 54 EC for both residential and commercial part of the immovable property.The maximum amount of investment is 50 lacs in a financial year.

 

Regards,

Fatema.

 How much exemption will be available??????

Amount of exemption will be the amount of capital gain or the investment made in NHAI or RECL, whichever is lower.

 

Originally posted by : FATEMA

Amount of exemption will be the amount of capital gain or the investment made in NHAI or RECL, whichever is lower.

Pls let me know suppose i have property which consisit of residential and commercial part and i sell it for 10 Lacs and invest in new property purchase for Rs 13 Lacs And cost of acquisition of property is  6 Lacs then how much exemption will be available?????

The Property which is consist of Residental Part u can Claim Exemption u/s 54.

Exemption

(Cost of New Residental House(RH) is greater then the Capital Gain(CG) thn the Whole of CG. Otherwise to the extent of the New RH.)

and 

The other part u can claim exemption u/s 54F.

Exemption

(If the Cost of New RH is not less then the Whole of the CG.Otherwise the CG in the same proportion as the cost of the New RH bears to the net consideration.) 


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register