Acquisition of an apartment under a builder-buyer agreement wherein the builder gets construction done in a phased manner and the payments are linked to construction is a case of purchase and not construction of a new asset. The Tribunal held that even in a case where construction of new asset commenced before the date of […]
CO-OWNERSHIP AND EXEMPTION UNDER SECTION 54F
Individual or HUF assessee’s are exempted from payment of income tax on capital gains arising from the transfer of any long-term capital asset, (not being a residential house), u/s. 54F of the IT Act on the purchase or construction of a residential house within the specified period. The exemption is subject to fulfilment of the […]
SECTION 54F EXEMPTION WHEN ASSESSEE JOINTLY OWNS RESIDENTIAL HOUSE
Ashok G. Chauhan vs. ACIT [2019] 105 taxmann.com 204 (Mum) – Condition of not owning more than a residential house on the date of transfer of the original asset would mean absolute ownership. It does not cover within its sweep a case where the assessee jointly owns residential house together with someone else Facts The […]
SECTION 54/54F EXEMPTION WHEN PURCHASE OF HOUSE IN JOINT NAME OR NAME OF THE RELATIVE
Section 54 provides for exemption from tax for capital gain arising from the transfer of long-term capital asset (being a residential house), if the assessee has, within a period of one year before or two years after the date on which the transfer took place purchased, or has within a period of three years after […]
EXEMPTION U/S 54/54F – MEANING OF “COST OF RESIDENTIAL HOUSE”
Under section 54 and 54F provides for exemption from Long Term Capital Gains for certain investments. Under section 54, the Assessee should appropriate the capital gains towards “cost of the residential house purchased or constructed”. Similarly, under section 54F, the assessee should appropriate the net sale consideration towards “cost of new asset (purchased or constructed, […]
Section 54/54F exemption – Date of starting of construction or payment of instalments not relevant
section 54, section 54F, construction prior to transfer, instalments prior to transfer, completion of construction, Section 54 provides for exemption from tax for capital gain arising from the transfer of long-term capital asset (being a residential house), if the assessee has, within a period of one year before or two years after the date on […]