The High Court held that the phrase 'a residential house' in ...

Tax exemption denied for investing sale proceeds in two separate flats, 'a residential house' means single unit.

December 5, 2024

Case Laws Income Tax HC

The High Court held that the phrase 'a residential house' in Section 54F of the Income Tax Act should be interpreted strictly to mean a single residential unit. The assessee was not entitled to claim exemption u/s 54F for investing in two separate flats located on different floors and at diagonally opposite ends, despite being in the same tower. The word 'a' denotes singular and not plural. The intent of the legislature was to grant exemption for investment in one residential house, not multiple residential units. However, the Court clarified that in certain cases where floors or houses are constructed to be used as one singular unit, they may qualify as 'a residential house' u/s 54F.

View Source

← Previous Next →

The High Court held that the phrase 'a residential house' in ...

Tax exemption denied for investing sale proceeds in two separate flats, 'a residential house' means single unit.

December 5, 2024

Case Laws Income Tax HC

You may also like:

Applicability of Section 64(1) and Section 54F of the Income Tax Act. Section 64(1) allows for the inclusion of a dependent spouse's income in the assessee's taxable...

This is a summary of a legal case involving deduction u/s 54F of the Income Tax Act for investment in residential property. The key points are: The assessee invested...

Deduction u/s 54 - LTCG invested in buying two residential units - the assessee would only entitle to the benefit of section 54, 1) if the assessee invested the LTCG...

Claim of deduction u/s 54F denied - assessee is not able to get the title of the flat registered in his name or unable to get the possession of the flat, which is under...

The assessee claimed exemption/deduction u/s 54F on account of investing long-term capital gains in a new residential house. The PCIT disallowed the claim, considering...

The tribunal held that for quantification of deduction u/s 54F of the Income Tax Act, the actual sale consideration received or accruing from transfer of the original...

Exemption / deduction u/d 54F - assessee has purchased two separate flats under two separate agreements - Merely because the assessee has let out the two flats to one...

Assessee purchased four flats constituting single residential unit within stipulated time period u/s 54F. Despite separate identification numbers, flats were merged and...

Long Term Capital Gains - Sale of society flat - proportionate portion of land in the society - As per the sale deed, it is clear that assessee gets a membership on the...

Disallowance u/s 54F - Investment of Sale consideration for claiming exemption on LTCG - Advance was given for purchase of new residential property but the transaction...

LTCG - Exemption u/s 54F - assessee has purchased triplex flat - The Assessing Officer rejected the claim, arguing that the purchase did not qualify as a single...

Eligibility to exemption u/s.54F - Although the failure of the assessee to deposit the sale proceeds in a Capital Gains Account Scheme, 1988 for intervening period was...

Legal interpretation of the term "original asset" for claiming exemption u/s 54F of the Income Tax Act. It discusses the ownership rights over the "original asset" by...

The ITAT adjudicated a capital gains tax exemption claim under Section 54, reversing lower authorities' decisions. The tribunal held that the assessee was entitled to...

Exemption u/s 54 - no documentary evidence to substantiate the claim that any amount was invested for purchase of new residential house except a certificate of builder...

Quick Updates: