Question ID : 40969

Section 54F

Hello Everyone! Whether exemption under section 54F available for investing in rural agriculture land and constructing a residential property thereon (Farm House) out of sale proceeds received from sale of shares of unlisted company? Please also provide reference of HC Judgements

Answer ID : 80902

Yes. Inference :- Mahavir Prasad Gupta v. CIT [2006] 5 SOT 355 (Delhi).

Answer ID : 80914

Yes. Farm house can be treated as residential property for claiming exemption under section 54F. Case law- Shyam Sunder Mukhija vs Income-Tax Officer, 38 ITD125, ITAT Jaipur, Hon'ble kerala High Court in the case of Smt. Asha George Vs. ITO, Ward2(1), Thrissur in ITA No. 114 of 2012 order dt. 16/01/2013 and Ito, W-4, Panchkula vs Smt. Seema Bishnoi, Panchkula by ITAT Chandigarh.

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