Search Results For: profit on sale of propety


QUERY: ‘P’ had to sold her property in order to finance her daughter’s medical expenses.

The agreement for sale was entered for Rs. 50/- lakh. She received only Rs. 35/- lakh due to dispute with the buyer. No possession of the property was given. She does not have money to invest in order to claim exemption u/s. 54. The AO passed the order levying tax on Rs. 50/- lakh. Whether AO is right?
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In this case transfer is not complete, because of property has not been given and therefore there is no question of investing in another house to claim exemption under section 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.
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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: