Pawan Mittal (CA Final) (702 Points)
10 June 2013Mr. X has income under the Head "Long Term Capital Gains" of Rs. 7 lacs in the Financial year 2013-14. He is having a residential house property "A" which is two storey building.
Now for availing the exemption u/s 54F, can Mr. X invest the capital gain of Rs. 7 lacs in his existing house "A" and build up the third storey in this building.
shiv shankar rawat student CMA
(Manager)
(263 Points)
Replied 13 June 2013
Dear Pawan
For awailing of exemption U/S 54 F some condition is require
1:- the assessee does not have a residential house property more then one at the time of sale consideration
2:-the amount of rs. 7 lac can;t be invest in existing residentail house property
3:- require to invest the said gain amount in a new residential house property or land within 02/03 years after the sale consideration
Sunshine
(Helping All)
(10575 Points)
Replied 13 June 2013
yes, construction of a new floor in an existing building amounts to a new contruction as per varoius case law decisions ... benefit of sec 54F can be availed fr the same....
shiv shankar rawat student CMA
(Manager)
(263 Points)
Replied 14 June 2013
Dear Sunshine
clearly mention in income tax act u/sec 54 F
require to acquire a new residential house or constructd any land
not construct in existing property
IF SUCH TYPE OF MATTER INS DISCUESS IN ANY LAW PLS PROVIDE THE SAME
rgds
S.S.RAWAT
CAclubindia
