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.
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