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Whether Residial House Purchased Outside India Is Entitled For Benefit Of S. 54?

QUERY: A NRI settled in USA. He is having Green Card. He purchased four residential properties when he was resident in India with Indian Rupees. All his properties are more than three years old. Now he has just sold all its properties. To save taxes he wants to purchase another one property in USA. Could he do it under section 54, as it no where written that properties must be purchased in India?

Can he send the money to USA without deducting any withholding taxes, to purchase the property in USA.
ANSWER: Click here to read the full answer of the expert

According to me, the benefit under section 54 of the Act cannot be denied on acquisition of property in USA. This view is supported by the Mumbai Tribunal in the case of Mrs. Prema P. Shah vs. ITO [100 ITD 60], wherein the Tribunal has held as under:

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