Exemption u/s 54

[Ethirajan Parthasarathy]

‘A’ sells a land for ₹ 1,00,00,000/- during assessment year 20-21 and buyers a residential property immediately for RS 2,00,00,000/- claims exemptions U/S 54F. During assessment year 2021 -2022 he sells a residential property resulting in capital gain of ₹ 80,00,000/-. Can he claim exemption again for the same property purchased in assessment year 20-21 because it is within one year from date of sale of Second Property.

[CASusheel Gupta]

Yes, no bar on taking benefit under section 54 and 54F agaisnt same property

CA Susheel Gupta

9811004443

AI Summary

Taxpayer Can Claim Exemption Under Section 54F Twice for Same Property Purchased Within One Year of Sale. A taxpayer sold land for 1,00,00,000 during the assessment year 2020-21 and purchased a residential property for 2,00,00,000, claiming an exemption under Section 54F. In the following assessment year, 2021-22, they sold another residential property, resulting in a capital gain of 80,00,000. The query was whether they could claim an exemption again for the same property purchased in 2020-21, as it was within one year of the second property's sale. The response confirmed that there is no restriction on claiming benefits under Section 54 and 54F for the same property.