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Sec 54 f

arpit (Manager) (247 Points)

03 February 2015

I am selling one residential land property. I also have one house in Vadodara , where i stay currently. Can I purchase one new residential property in Surat from the sale proceeds of the residential land and claim exemption u/s 54F. Please help. Also will it make any difference if i want to purchase a open residentail plot , will i be eligible to still cliam exemption u/s 54F.

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7 Replies

arpit (Manager) (247 Points)
Replied 03 February 2015

Sorry i am selling commerical property and not residential.

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Intermediate Student (-) (644 Points)
Replied 03 February 2015

U wil eligible for deduction u/s 54f if u purchase house and not plot/land within the specified time. U own one house in vadodara does not make any problem.

S SAMPATH (CA Job) (38 Points)
Replied 03 February 2015

You can avail 54F provided follwoing condition are satified

1. the commercial property should be long term capital assets ie you should have kept the property in you name for more than 3 years before sale or transfer

2. you should not sell the new house with in 3 years of its purchase or constrction

3. you cannot avail 54f on purchase of plot

4. you should not buy any additional property except the new house

Arif Ali (Apt Co Advisory) (1230 Points)
Replied 03 February 2015

Originally posted by : arpit
	I am selling one residential land property. I also have one house in Vadodara , where i stay currently. Can I purchase one new residential property in Surat from the sale proceeds of the residential land and claim exemption u/s 54F. Please help. Also will it make any difference if i want to purchase a open residentail plot , will i be eligible to still cliam exemption u/s 54F.

yes you can claim 54F if you held this commercial property held for more than 3 year i.e. it is Long term capital asset and purchase the residential house property.

If you purchase Land, then you can not claim exemtpion u/s 54F.

shubham vijay (student) (21 Points)
Replied 03 February 2015

sir i have sold 2 long term house property being urban land..one land was sold on 05-06-2013 and another land was sold on 29-07-2013. and i purchased one residential property being ground floor unit on 05-06-2013.other conditions of sec 54F being satisfied can i claim deduction for LTCG on both urban lands or i am elegible to claim exemption u/s54F for only one capital asset.

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arpit (Manager) (247 Points)
Replied 03 February 2015

THANKS SAMPAT AND ALI....THIS IS WHY I JUST LOVE CACLUBINDIA.....

Ankit Aggarwal (Practicing CA) (47 Points)
Replied 04 February 2015

From 1st april 2015 onwards as per Finance Bill 2014. You can not claim deduction U/s 54F for more than one residential house in India. Since 1st april 2015 onwards, residential house has been subsituted with the word one residential house in India under section 54/ 54F.