#section 54f

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Brief Synopsis of Capital Gain Exemption u/s 54, 54EC & 54F

Brief Synopsis of Capital Gain Exemption u/s 54, 54EC & 54F

CA Rohit R Sharma

Hello Everyone,

As we had discussed about the taxation rules on sale of immovable property, in the article on Capital Gain on Immovable Property we are here to understand the benefits that can be claimed under section 54, 54EC & 54F to save tax on long term capital gains.

At the time of sale of any Long term Capital Asset, the gain is taxed at a steep rate of flat 20%. In order…

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These provisions of income tax act are applicable to all assessees both individuals and Hindu undivided families. Section 54 of the Act deals with property such as building which is a residential house but section 54F deals with property other than a residential house.

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No Section 54F exemption on Property Purchased in married daughters name

No Section 54F exemption on Property Purchased in married daughters name

Language of the Section 54F and 54B is very clear that it relates to unmarried daughters. Here the undisputed fact is that the property is purchased in the name of married daughters. When the Legislature thought it fit to specify the words ‘unmarried daughters’, the Court cannot substitute the words.  So Tribunal was right in holding that the assessee/appellant is not entitled to claim deductions…

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Section 54F - Assessee cannot be presumed to be owner of Property Purchases by Minor Daughter Out of own resources

Section 54F – Assessee cannot be presumed to be owner of Property Purchases by Minor Daughter Out of own resources

Smt. S. Uma Devi vs. CIT (ITAT Hyderabad), ITA No.886/Hyd/2010, Date of Pronouncement: 30/01/2015

Section 54F – Assessee cannot be presumed to be owner of  Property Purchases by Minor Daughter Out of own resources

Office space, situated in a commercial complex cannot be treated as residential House Property despite showing rent as  Income from House Property. (more…)

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For exemption u/s.54F, approval of building plan is not necessary

For exemption u/s.54F, approval of building plan is not necessary

CA Prarthana Jalan

The Hon’ble Chennai ITAT has in the case of B.Sivasubramanian,v/s ITOhas held that there is no condition in the provisions of SEC 54F of the I.T Act,1961 that warrants  that the building plan of the residential house constructed should be approved by the Municipal Corporation or any other competent authority. If any person constructs a house without approval of building plan,…

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Section 54/54F & time limit for deposit/ reinvestment of capital gain

Section 54/54F & time limit for deposit/ reinvestment of capital gain

CA Vinay V. Kawdia

Introduction:

A bare reading of section 54F clearly shows that the assessee is entitled for exemption in case he/she purchase/constructs a residential house within a period of two/three years after the sale of the capital asset. However, sub-clause (4) of section 54F clearly says that the unutilized portion of the net sale consideration [not utilized before the date of…

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Claim u/s 54/54F may be allowable in case of purchase of more than one new flats when such flats constitutes one residential house

Claim u/s 54/54F may be allowable in case of purchase of more than one new flats when such flats constitutes one residential house

During the assessment year, the assessee has sold its factory premises from which it has been showing rental income. In the computation of total income the assessee has claimed deduction u/s 54F of Rs. 1 ,34,95,220/- on the investment in three flats. The AO asked the assessee to explain as to how it can claim deduction u/s 54F on three different units on the same floor and in the name of three…

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HC grants exemption U/s. 54F on construction of new house after demolishing of old one

HC grants exemption U/s. 54F on construction of new house after demolishing of old one

The Assessing Officer made two additions. Firstly, benefit under Section 54F of the Act was denied and capital gains of Rs.51,71, 994/- was brought to tax. The second addition made by the Assessing Officer of Rs.19,75,410/- under Section 68 of the Act was deleted by the CIT(Appeals) recording that the said addition was entirely unjustified. The Assessing Officer himself in the remand report…

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