sowmiya.v (ca student) (156 Points)
19 December 2012AY :2013-14
Assesse has sold a residential house property in oct 2012 on which capital gains is Rs 3 crores. he has got a property in august 2012 through family, in that property there were some people already staying for around 20 years. In order to get the property cleared from them Rs 3 crores is to be paid, can the assesse claim this amount against that capital gains U/s 54 ?
Sonali
(Partner)
(43 Points)
Replied 21 December 2012
The amount of Rs 3 crore paid to tenants can be claimed as Cost of improvement u/s 55. It cannot be claimed u/s 54 .
As per sec 54 any long term capital gain , arising to an individual or huf , from the sale of a residential property shall be exempt to the extent such capital gain invested in the
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