Section 54F

Section 54F of the Income Tax Act, 1961

Income Tax - Section 54F  of the Income Tax Act 1. Assessee is an Individual or HUF. 2. Capital Gain arises from the Sale of any capital asset other than Residential House. 3. This asset is called original asset. 4. Assessee has purchased a Residential House within a year before the date of transfer or constructed a residential […]...

Read More

Commencement of property construction prior to transfer of original asset not an impediment for section 54F exemption

Income Tax - The Delhi High Court in case of Bharti Mishra held that section 54F prescribes appropriation of sale consideration within one year before the date of transfer of original asset, two years from the date of transfer or construction of new property within three years from the date of transfer. However, the Act does not prescribe any conditio...

Read More

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...

Read More

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...

Read More

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. ...

Read More

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. ...

Read More

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)....

Read More

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....

Read More

Section 54F Exemption cannot be denied if assessee invests entire consideration in construction of residential house

Vijay Mahipal v. ITO (ITAT Kolkata) - Vijay Mahipal v. ITO (ITAT Kolkata) If the assessee invests the entire consideration in construction of the residential house within three years from the date of transfer he cannot be denied deduction u/s 54F of the Act on the ground that he did not deposit the said amount in capital gain account sc...

Read More

Section 54F exemption if Sale Proceed not invested in Specified Govt Scheme but Property purchased within Three Years

Sh. Vijay Chaudhary Vs ITO (ITAT Delhi) - Sh. Vijay Chaudhary Vs ITO (ITAT Delhi) Whether the assessee invests the entire sales consideration in construction of a residential house within three years from the date of transfer can he be denied exemption under Section 54F on the ground that he did not deposit the said amount in capital gains ...

Read More

CIT(A) cannot enhance income based on sources not considered during assessment

Hari Mohan Sharma Vs ACIT (ITAT Delhi) - Enhancement u/s 251 (1) (a) is prohibited on the issues which have not at all been considered by AO during assessment proceedings, therefore, CIT (A) had exceeded his jurisdiction in enhancing the income of assessee by considering the new sources of income not at all considered by AO....

Read More

No Deduction u/s 54B /54F if sale deed was unregistered and payment was in cash

Shri Ram Narayan Vs ITO (ITAT Jaipur) - Shri Ram Narayan Vs ITO (ITAT Jaipur) Conclusion: Since assessee purchased land through an agreement to sale which was unregistered and the payment was made in cash, therefore, in absence of sale deed, the unregistered agreement would not transfer any title to assessee of the agricultural land, acco...

Read More

Section 54F Unutilized capital gain taxable as income u/s 45 after 3 Years

Prof. P.N. Shetty Vs ITO (Karnataka High Court) - Unutilized capital gain amount under Section 54 F[4] had to be charged under Section 45 as income of the previous year, after the expiry of three years from the date of sale of the capital asset as per proviso appended to Section 54F[4] and withdrawal of amount was permitted subject to deduction of ...

Read More
Sorry No Post Found

Section 54F’s Popular Posts

Recent Posts in "Section 54F"

Section 54F Exemption cannot be denied if assessee invests entire consideration in construction of residential house

Vijay Mahipal v. ITO (ITAT Kolkata)

Vijay Mahipal v. ITO (ITAT Kolkata) If the assessee invests the entire consideration in construction of the residential house within three years from the date of transfer he cannot be denied deduction u/s 54F of the Act on the ground that he did not deposit the said amount in capital gain account scheme before the […]...

Read More

Section 54F exemption if Sale Proceed not invested in Specified Govt Scheme but Property purchased within Three Years

Sh. Vijay Chaudhary Vs ITO (ITAT Delhi)

Sh. Vijay Chaudhary Vs ITO (ITAT Delhi) Whether the assessee invests the entire sales consideration in construction of a residential house within three years from the date of transfer can he be denied exemption under Section 54F on the ground that he did not deposit the said amount in capital gains account scheme before the […]...

Read More

CIT(A) cannot enhance income based on sources not considered during assessment

Hari Mohan Sharma Vs ACIT (ITAT Delhi)

Enhancement u/s 251 (1) (a) is prohibited on the issues which have not at all been considered by AO during assessment proceedings, therefore, CIT (A) had exceeded his jurisdiction in enhancing the income of assessee by considering the new sources of income not at all considered by AO....

Read More

No Deduction u/s 54B /54F if sale deed was unregistered and payment was in cash

Shri Ram Narayan Vs ITO (ITAT Jaipur)

Shri Ram Narayan Vs ITO (ITAT Jaipur) Conclusion: Since assessee purchased land through an agreement to sale which was unregistered and the payment was made in cash, therefore, in absence of sale deed, the unregistered agreement would not transfer any title to assessee of the agricultural land, accordingly, the claim of deduction under se...

Read More

Section 54F Unutilized capital gain taxable as income u/s 45 after 3 Years

Prof. P.N. Shetty Vs ITO (Karnataka High Court)

Unutilized capital gain amount under Section 54 F[4] had to be charged under Section 45 as income of the previous year, after the expiry of three years from the date of sale of the capital asset as per proviso appended to Section 54F[4] and withdrawal of amount was permitted subject to deduction of tax....

Read More

Sec 54F date of agreement to sell can be considered as date of transfer 

Kishorbhai Harjibhai Patel Vs ITO (Gujarat High Court)

Once an agreement to sell is executed in favour of some person, the  said person gets a right to get the property transferred in his  favour and, consequently, some right of the vendor is extinguished. Therefore, the agreement to sell which had been executed on 13th August 2010 was considered as the date on which the property, i.e. the ...

Read More

For Section 54 exemption compute holding period from asset acquisition date

ACIT Vs Sandeep U Mehta (ITAT Mumbai)

Assessee was entitled to exemption under section 54 on long term capital gain on sale of properties as the holding period of the asset should be considered from the date of acquisition of asset in the light of agreement to sale, but not from the date of possession of the property....

Read More

Section 54F deduction on cost of additional floors on new house

Shri Ramakrishna Aswatgh Vs ITO (ITAT Bangalore)

Shri Ramakrishna Aswatgh Vs ITO (ITAT Bangalore) In the present case, new house was purchased and the construction of additional floors was on such new house purchased by the assessee and this new house building purchased by the assessee has been accepted as eligible for deduction u/s. 54F. FULL TEXT OF THE ITAT JUDGEMENT This appeal [&h...

Read More

Section 54F exemption allowable if construction completes within a period of three years from the date of transfer of original asset

Shri Sohanlal Mohanlal Bhandari Vs ACIT (ITAT Pune)

Shri Sohanlal Mohanlal Bhandari Vs ACIT (ITAT Pune) Adverting to the facts of the instant case, it is seen from pages 5 and 6 of the impugned order that the assessee acquired land in two parts for construction of a new residential house, viz, the first part of the plot purchased on 11.10.2010 and the […]...

Read More

Section 54F Exemption without evidence of Agreement & Payment not allowable

Smt. Archana Kanwar Vs ITO (ITAT Chennai)

Smt. Archana Kanwar Vs ITO (ITAT Chennai) We have heard both the sides, perused the materials available on record and gone through the orders of authorities below. During the previous year relevant to the assessment year 2012-13, the assessee sold a vacant plot at Gurgaon, Haryana for a consideration of ₹.75,00,000/- after reducing the ...

Read More

Browse All Categories

CA, CS, CMA (4,238)
Company Law (4,949)
Custom Duty (7,351)
DGFT (3,974)
Excise Duty (4,229)
Fema / RBI (3,814)
Finance (3,990)
Income Tax (30,556)
SEBI (3,181)
Service Tax (3,468)