Applicability of Exemption u/s 54, Income Tax

[DINESH MITTAL]

'A' sold house in India and purchase a new house within stipulated period in Canada, whether he is legible for exemption u/s 54. of the Income Tax Act, 1961

Posts / Replies

[Dinesh Gupta]

There is no restriction in section 54 of the Income Tax Act, which restrict the investment of capital gain within stipulated period in a house property situated out of India. Therefore you can buy a house in Canada and claim the exemption.

[sunil gupta]

Dear friend you can refer to 282 ITR (AT)211 , Mumbai - wHERE IT HAS BEEN HELD SEC.54 DOES NOT PROHIBIT PURCHASE OF PROP. IN A FOREIGN COUNTRY.