Individual has sold gold and purchase " Plot to construct house " , can exemption be clam under section 54F and what is the definition of residential property and residential house under Income tax Act ?
3 Replies
Rounak Chawla
(CA Final Student)
(291 Points)
Replied 22 April 2011
yes exemption can b claimed by selling Gold..... exemptn u/s 54F can b claimed by selling ANY "CAPITAL ASSET" n buying a residential house wid d sale conderatn....
for d meaning of residential house,etc refer House property Head....
i hope u r satisfied...
Rounak Chawla
(CA Final Student)
(291 Points)
Replied 22 April 2011
plot is an integral part for construction of house...so deductn will b allowed...
as per circular no. 667, dated 18-10-1993 exemptn u/s 54f is allowd....
ujjawal
(student)
(236 Points)
Replied 23 April 2011
@ Raunak Chawla i need more clarification :::
it is written in section 54F that " Income from Such property shall be chargeable under head Income from house property "
"section 22 provides that definition of house property as any building or land appurtenant to building is house property " and only plot cannot generate income from property .....hence plot cannot be be house property or residential property .
and section 54F provides "condition" that Income of such residential property should be charged under head " Income of house property "
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