Section 54F

Interim budget has good news for property owners as well

Income Tax - This interim budget as expected intends to harvest good votes in the election season and has therefore proposed various beneficial proposals for small tax payers It  proposes various provisions which are beneficial for the owners of property. Let us discuss. Enhancement for limit on TDS on rent The Finance Minister (FM) has proposed to e...

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Issues In Allowing Exemption U/S 54 & 54F- Long Term Capital Gain

Income Tax - Long term capital gain on purchase of residential house is exempt u/s 54 & 54F. The author do not wish to go in the procedure of calculating capital gain. The subject addressed in this article is connected with various issues which are concerned with the allowability or otherwise of the long term capital gain invested in the purchase of r...

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Investment in multiple houses for exemption under section 54/54F

Income Tax - Controversy always cropped between taxpayer and income tax department whenever taxpayer claim exemption under section 54 and 54F for investment made in multiple houses. Question that now arise whether the prefix ‘a’ used before the word residential house is interpreted in singular or plural sense. ...

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Capital Gain on Real Estate Transactions

Income Tax - Introduction- The topic of taxation of capital gains on real estate transaction under the income tax act is live and ever interesting topic from point of view of all concerned with such taxation. This is one set of provisions in the Act which has raised maximum number of issues of interpretation. In the recent years several amendments ...

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Income From Capital Gain – Assessment , Case Laws

Income Tax - The issue of short term capital gains (STCG) vs long term capital gains (LTCG) is an ongoing issue. In many of the cases, it is also intertwined with treating such gains as business income. Further, in some of the cases where claims of LTCG have been made, the AOs have treated them as sham transactions and taxed them under Section 69 of t...

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Clarify whether acquisition of residential flat in ‘OAS’ is ‘purchase’ or ‘construction: ICAI

Income Tax - Under Section 54 of the Income-tax Act, if an assessee who has earned a Capital Gain on sale of a residential house, has, within the prescribed period, purchased or constructed another residential house, then, to the extent of the cost of the new residential house, no tax in respect of such Capital Gain is payable. ...

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Clarify Section 54 and 54F – Capital gains exemption in case of investment in ONE residential house property in INDIA: ICAI

Income Tax - Section 54(1) has been amended by the Finance (No.2) Act, 2014 by substituting constructed, a residential house, with constructed, one residential house in India. Similar amendment is made in section 54F(1)....

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ICAI suggests Certification of deductions claimed U/s. 54, 54F, 54EC etc

Income Tax - At present deductions u/s 54, 54F, 54EC etc. are not subject to any audit or certification. The possibility that the assessee claims inaccurate amount of deduction under such provisions cannot be ruled out....

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Deduction U/s. 54F can be claimed against Gain on Multiple Assets in Multiple Years

Shri Pankaj Chimanlal Patel (HUF) Vs DCIT (ITAT Ahmedabad) - Shri Pankaj Chimanlal Patel (HUF) Vs DCIT (ITAT Ahmedabad) The essential controversy in the instant case is whether deduction under 54F of the Act is available in respect of capital gains arising from sale of more than one long term capital assets, not being residential house (original asset) agains...

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Section 54F exemption allowable on Sale of Under-Construction Property as same is not residential property

CIT Vs Kalpana Hansraj (Bombay High Court) - CIT Vs Kalpana Hansraj (Bombay High Court) Perusal of sub-section (1) of Section 54 of the Act would show that the exemption would be available to an assesse being an individual or Hindu Undivided Family where the capital gain arises from the transfer of a long-term capital asset, not being a resi...

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Section 54F exemption cannot be denied for mere non-completion of construction by builder

Sanjeev Sarin Vs ITO (ITAT Delhi) - Sanjeev Sarin Vs ITO (ITAT Delhi) In this case assessee has within stipulated period, made substantial investment towards purchase of new property and just because builder could not complete construction of residential house, claim of exemption under section  54F of Income Tax Act, 1961 cannot be d...

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Expenditure on removal of encumbrance includible in cost of new house property

ACIT Vs Himanshu Jayanti Lal Kamdar (ITAT Ahmedabad) - While computing exemption under section 54F, expenditure incurred towards vacating the new house property from tenants were includible as part of its cost, because existence of encumbrance was specified in the purchase agreement and original cost of acquisition was much lower than fair market value ...

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Date of allotment is date on which purchaser can be stated to have acquired the property

Vembu Vaidyanathan Vs Pr. CIT (Bombay High Court) - Vembu Vaidyanathan Vs Pr. CIT (Bombay High Court) During the course of assessment the Assessing Officer examined this claim and came to the conclusion that the gain arising out of sale of capital asset was a short term capital gain. The controversy between the assessee and the revenue revolves aroun...

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Section 54F’s Popular Posts

Recent Posts in "Section 54F"

Deduction U/s. 54F can be claimed against Gain on Multiple Assets in Multiple Years

Shri Pankaj Chimanlal Patel (HUF) Vs DCIT (ITAT Ahmedabad)

Shri Pankaj Chimanlal Patel (HUF) Vs DCIT (ITAT Ahmedabad) The essential controversy in the instant case is whether deduction under 54F of the Act is available in respect of capital gains arising from sale of more than one long term capital assets, not being residential house (original asset) against the construction or purchase of one [&...

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Section 54F exemption allowable on Sale of Under-Construction Property as same is not residential property

CIT Vs Kalpana Hansraj (Bombay High Court)

CIT Vs Kalpana Hansraj (Bombay High Court) Perusal of sub-section (1) of Section 54 of the Act would show that the exemption would be available to an assesse being an individual or Hindu Undivided Family where the capital gain arises from the transfer of a long-term capital asset, not being a residential house provided the remaining con...

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Section 54F exemption cannot be denied for mere non-completion of construction by builder

Sanjeev Sarin Vs ITO (ITAT Delhi)

Sanjeev Sarin Vs ITO (ITAT Delhi) In this case assessee has within stipulated period, made substantial investment towards purchase of new property and just because builder could not complete construction of residential house, claim of exemption under section  54F of Income Tax Act, 1961 cannot be denied. FULL TEXT OF THE ITAT JUDGMENT Th...

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Expenditure on removal of encumbrance includible in cost of new house property

ACIT Vs Himanshu Jayanti Lal Kamdar (ITAT Ahmedabad)

While computing exemption under section 54F, expenditure incurred towards vacating the new house property from tenants were includible as part of its cost, because existence of encumbrance was specified in the purchase agreement and original cost of acquisition was much lower than fair market value of the house property due to such attach...

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Date of allotment is date on which purchaser can be stated to have acquired the property

Vembu Vaidyanathan Vs Pr. CIT (Bombay High Court)

Vembu Vaidyanathan Vs Pr. CIT (Bombay High Court) During the course of assessment the Assessing Officer examined this claim and came to the conclusion that the gain arising out of sale of capital asset was a short term capital gain. The controversy between the assessee and the revenue revolves around the question as to when […]...

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Exemption U/s 54F allowable on capital gain on sale of depreciable assets

Shri Shrawankumar G. Jain Vs ITO (ITAT Ahmedabad)

Assessee was entitled to claim exemption under section 54F on gain earned on the sale of factory shed as factory shed inherently being long-term capital asset as per the provision of Section 2(42A) even if sale of factory shed was subject to short-term capital gain on the basis of deeming provision as specified under section 50. ...

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Section 54F deduction fully allowable despite property purchase in joint names

Shri Bhatkal Ramarao Prakash Vs ITO (ITAT Bangalore)

Assessee was entitled to the benefit of deduction u/s.54F to the whole extent of investment in purchase of new asset, even though property had been purchased in the joint names of assessee, his wife and son....

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Section 54F deduction not available on failure to deposit unutilized amount in CGS account by due date

Uddhav Krishna Bankar Vs ITO (ITAT Pune)

Assessee was not entitled to claim of deduction under section 54F as assessee had failed to deposit the unutilized amount of capital gains in the capital gains scheme account by the due date of filing of return of income....

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Source of utilization of fund irrelevant for deduction U/s. 54/ 54F

Yatin Prakash Telang Vs ITO (ITAT Mumbai)

Where assessee had purchased new residential house utilizing own funds lying in his saving bank account, deduction under section 54F could not be denied on the allegation that assessee did not utilize capital gains for investment purpose because source of utilization of fund is irrelevant for claiming benefit of deduction under section 54...

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Section 54F on investment of sale proceeds in name of assessee & her husband

Smt. Waheeda Asif Abbas Vs The Income Tax Officer (ITAT Chennai)

Smt. Waheeda Asif Abbas Vs ITO (ITAT Chennai) The Assessing Officer disallowed the claim of the assessee under Section 54F of the Act on the ground that the assessee’s husband was not having any share in the property sold by the assessee. Since the investment was made in the name of the assessee and her […]...

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