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Reply 54 & 54 F

devang (CA FINAL article ) (181 Points)

25 June 2011

u can avial both exemption but u preference to first 54 then after 54 f section because in 54 exemption limit is "investment or LTCG w.e. higher " and 54 f limit is " investment *LTCG/ Net consideration "

so First Preferance to 54 then 54F

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8 Replies

Sunshine (Helping All) (10575 Points)
Replied 25 June 2011

no..section 54 is for capital gain by transfer of residential house property and 54F is fr capital gain by transfer other than residential house propert..how can u claim both??where is the question of preference?do not get confused..both are separate things

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devang (CA FINAL article ) (181 Points)
Replied 25 June 2011

in the question he sell residentail house and share so first apply 54 for selling residentail house and purchasing other residentail house

Sunshine (Helping All) (10575 Points)
Replied 25 June 2011

better will be bifurcating both the capital gains and adjusting the exemptions separately....coz u cant claim sec 54 deduction on capital gain made by selling shares....ok..so do separate calculations fr both- 54 fr house property and 54F for shares..

Revert if u have any further doubt..

Regards!!

Sunshine (Helping All) (10575 Points)
Replied 25 June 2011

dont mix them ok..

and give proper working notes to make it clearer to the evaluator..

Vijay (Adamo Studio) (2112 Points)
Replied 26 June 2011

Hey sunshine devang is right here 54 nd 54F are different on account of sale as 54 deals with sale of resi HP and 54F deals with sale of other than resi Hp.

But when it is a question of claiming exemption then it is a matter of purchasing a new HP.

So deduction claimed where it is more benificial i.e. sec 54F coz whole amound is qualified yes upto the amount of capital gain.