Capital gains deduction u/s Sec 54

Direct Taxation

Mr. A transfers one of his residential houses on ,say 1/4/2021. Within 1 year prior to the date of transfer, he had purchased one residential house. Is he eligible to claim deduction u/s 54? Will your answer differ if he had constructed a residential house instead of purchase, within 1 year prior to the date of transfer?

Sibi Srinivasan

CA Final

★ 22K+

18-Jul-22 09:08

546

Answers (3)

Under this section 54, for claim the exemption the assese has to utilise the amt. For purchase/ construction a residental house within the following period If purchase: within a period of 1 year before or 2 year after the date of transfer If construction: within a period of 3 years after the date of transfer Now move to ur question.... If he purchased before 1 year of transfer then he/she can claim exemption If he constructed the house within one year then exemption is not available I hope u understand it

Rick Y

CA Final

★ 2K+

18-Jul-22 22:26

As per the first case he is eligible to claim deducted u/s 54 But in second case he can't claim cause according to provision in order to claim exemption u/s 54 he can claim only if he constructs within 3 years from the date of transfer

Thanusha Lakshmi

CA Final

★ 3K+

18-Jul-22 22:29

Understood. Thank you both!

Thread Starter

Sibi Srinivasan

CA Final

★ 22K+

19-Jul-22 06:38