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LTCG

Aankit Khandelwal (Aricle Assistant) (34 Points)

14 September 2011

If assesee have his own residence house. and one office which is closed from long time. now he sold that office. from that he earns LTCG of approx 20 lacs. he is planning to do the investment in house propery.

do he get the deduction.....??

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5 Replies

VIJAYKUMAR (CHARTERED ACCOUNTANT) (203 Points)
Replied 14 September 2011

He can get deduction under section 54 F

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Nitin Garg (CA FINAL Article Trainee B.com) (171 Points)
Replied 14 September 2011

You can avail exemption U/s 54F, subject to fulfillment of the following conditions:-

(i) The transferor assessee should purchase or a residential house in India within a period of one year before or two years from the date of transfer or construct a residential house within three years from the date of the transfer of the original house. (Construction must be completed within these 3 years.), and

(ii) The new house property purchased or constructed has not been transferred within a period of three years from the date of purchase or construction.

Aankit Khandelwal (Aricle Assistant) (34 Points)
Replied 14 September 2011

Dear all,

how it will get deduction under section 54F.

As per my knowledge there is one condition under section 54F which is as follows:-

if on the date of transfer of the LongTerm Capital Asset, the Asessee should not own more than one Residential House Property, for claiming deduction under section 54F.

ashish gupta ( student) (1922 Points)
Replied 14 September 2011

I think Section 54 could be applicable as well. When assessee does not use the office for his business or profession then that becomes a residential property as well chargeable under the head house property.

Please correct me if i am wrong.

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