Home / Finance / Personal Finance / Sec 54 benefit gets forfeited unless taxpayer meets multiple criteria

Sec 54 benefit gets forfeited unless taxpayer meets multiple criteria

An ITAT ruling has clarified seller can commit to buy new house much before selling old one

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5 min read Last Updated : Aug 28 2023 | 10:56 PM IST

A recent ruling of the Income-Tax Appellate Tribunal (ITAT) has clarified that the seller of a residential property can avail of capital gains tax exemption even if she committed to buy a new house much before selling her old property. The Delhi bench of the ITAT ruled on the applicability of Section 54 of the Income-Tax (I-T) Act in the case of Reema Chawla.

Says Amit Bansal, partner, Direct Tax, Singhania & Co., “Under Section 54, an individual or Hindu Undivided Family (HUF) selling a residential house property can claim the exemption for capital gains if they invest the proceeds

Topics : Income-tax court Direct taxes

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