Become a Certified GST Practitioner in just 58 hours. Register Now!

Section 54f proceeds of residential house property

Pawan Mittal (CA Final) (711 Points)

09 May 2013

Dear Experts,

Section 54F says that "the capital gain arises from the transfer of any long-term capital asset, not being a residential house".

Now my question is when an assessee has sold a residential house property than can he get the benefit of section 54F?

I am also aware that the assessee can get the benefit u/s 54 in the above case but if someone wants to take benefit u/s 54F than whether it is possible?

Reply
Follow
Share

8 Replies

(Guest)

No, it is not possible, u can get benefit in sec 54 only, and i want to ask you when you are getting benefit u/s 54 then why u need benefit u/s 54f ?

Upgrade to CAclubindia Pro. Subscribe Now!

Sonam Bidasaria (CA) (770 Points)
Replied 09 May 2013

There is no difference in "Residential House" and "residential House property". and hence on sale of residential house property, the assessee cannot get the benefit of Sec 54F.

Sonam Bidasaria (CA) (770 Points)
Replied 09 May 2013

Mr. Rajat, one may be wiiling to avoid the tax liability inaccordance with the provisions of Income Tax and thus want to get the benefit of all such sections which may be relevant for him.

For eg, in case of sale of listed securities, the assessee can take the benefit of Sec 54ED and Sec 54F to the extent possible for the assessee.

(Guest)

Miss Sonam , i agree with you, but i am talking about above case only, that assessee cannot get benefit of sec 54.

(Guest)

section 54 is much more beneficial than section 54 F.

I think no person will like to claim benefit of 54 f instead of 54

and it is clearely mentioned under law section 54 f will not be applicalble if assest transferred is long term residencial property, and we can not change the law.

Upgrade to CAclubindia Pro. Subscribe Now!

Zoya Khan (ABC) (800 Points)
Replied 09 May 2013

agree with the point,if one deduction is available,why look for another provision

Pawan Mittal (CA Final) (711 Points)
Replied 09 May 2013

Respected Learnt Experts,

Actually recently I was going through a case study CIT, Rohtak Vs. Shri Jagtar Singh Chawla

In this case the assessee has got the benefit of Section 54F even after selling a residential house property. That is why I was wondering how is this possible?

Zoya Khan (ABC) (800 Points)
Replied 09 May 2013

If I am reading it correctly,the case relates to grant of exemption after due date of return date. The assessee has sold two assets in the case,one is agricultural land and the other is residential house for Rs.2,16,00,000/- and Rs.8,25,000/- respectively. And he is claiming exemption for Rs.76,85,829 for purchase of residential house.I think sale of agricultural land covers the cost of house hence exemption u.s 54f was given. correct me if I am wrong