Further there is proviso to section 54F which states the condition in which section 54F is not applicable. The said proviso is given under Provided that nothing contained in this sub-section shall apply where (b) the income from such residential house, other than the one residential house owned on the date of transfer of the original asset, is chargeable under the head Income from house property. Therefore, he is just not eligible for the exemption u/s 54F because as per the section 54F a person is not eligible for exemption u/s 54F if he purchase more than a residential house other than the house already owned by him.In my opinion, the limit is ownership of two residential houses maximum .
(a) the assessee,
(i) owns more than one residential house, other than the new asset, on the date of transfer of the original asset; or
(ii) purchases any residential house, other than the new asset, within a period of one year after the date of transfer of the original asset; or
(iii) constructs any residential house, other than the new asset, within a period of three years after the date of transfer of the original asset; and
Can A Person Get Exemption u/s 54F If He Purchases More Than One House?
April 26, 2007 By Leave a Comment
Is there a limit to the number of residential properties that a person can invest in for claiming exemption u/s 54F?For eg: If a person is selling jewellery (long term), and buying two residential houses. At the time of transfer, the person already owned one residential house. Can he claim exemption u/s 54F for both the houses? maya.nair@…………net
No, the language used in Section 54F makes it clear that a person can not purchase more than one residential house within one year from the date of sale of the asset. Opening lines of Section 54F has used word “a residential house” as given under
