deduction under section 54F

[krishan sharma]

DEAR SIR IF AN ASSESSEE AVIALED THE DEDUCTION UNDER section 54F IN CASE OF CAPITAL GAIN BY PURCHASE A RESIDENT HOUSE BUT HE SOLD THE SUCH RESIDENT HOUSE AFTER ONE YEAR AND INVEST THE CONSIDERATION IN PURCHASE ANOTHER RESIDENT HOUSE PROPERTY PLEASE GIVE THE SUGGESTION IN REGARDING TO DEDUCTION WITHDRAWL

[CAGOPALJI AGRAWAL]

It would not matter if you buy another house, and the provisions of withdrawals would prevail as the house sold would not be long term.

AI Summary

Deduction under section 54F may be withdrawn when the residential asset purchased is sold shortly, notwithstanding purchase of another house. When an assessee who claimed a deduction under section 54F sells the residential house purchased with capital gain proceeds within a short period, the statutory withdrawal provisions apply and the fact that the assessee subsequently purchases another residential house does not prevent withdrawal of the deduction.