Pawan Mittal (CA Final) (702 Points)
09 May 2013Dear 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?
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.
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)
(702 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
CAclubindia
