Rss Feed
Tweeter button
Facebook button
Technorati button
Reddit button
Myspace button
Linkedin button
Webonews button
Delicious button
Digg button
Flickr button
Stumbleupon button
Newsvine button
Youtube button

Tuesday, March 16, 2010

Exemption u/s 54 on one Flat or House only

December 2, 2006 by taxworry · Leave a Comment 

I have a house in India. If we sell that house and buy 3 flats from the proceeds. Will that be ok under sec 54?From: akashsud@hotmail.com

Mark the words in RED below in Section 54

“………. where, in the case of an assessee being an individual or a Hindu undivided family], the capital gain arises from the transfer of a long-term capital asset , being buildings or lands appurtenant thereto, and being a residential house, the income of which is chargeable under the head Income from house property (hereafter in this section referred to as the original asset), and the assessee has within a period of one year before or two years after the date on which the transfer took place purchased or has within a period of three years after that date constructed, a residential house, then, …..”
Accordingly, if you purchase 3 flats , you may get exemption u/s 54 with respect to only one flat.Option to choose any flat for computation of exemption is with you.
Google Buzz

If you found this page useful, consider linking to it.
Simply copy and paste the code below into your web site (Ctrl+C to copy)
It will look like this: Exemption u/s 54 on one Flat or House only

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!