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

Exemption under section 54 allows reuse of the same replacement property for exemption under section 54F if conditions are met. The replacement residential property acquired after the sale of land can be treated as the subject of capital-gains exemption claims under the relevant residential property exemptions, and there is no bar to claiming benefit under both exemption provisions in respect of the same replacement property, subject to the statutory eligibility requirements for each exemption.