Exemption u/s 54 or 54F Allowed Even if Residential Property Bought is Used Subsequently for Commercial Purpose

Print Friendly, PDF & Email

Section 54 of the Income Tax Act provides exemption from tax on long term capital gains earned on sale of a residential property to the extent capital gains is used to buy or construct a residential house. Subsequent use of a residential property can not be a deciding factor for determining the exemption under section 54 of the Income Tax Act .This issue i.e whether subsequent use of a residential property as a commercial property determines the exemption u/s 54 was before ITAT and High Courts and income tax department has lost its case.

This content is for annual and Semi Annual members only.
Log In Register