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May 20, 2025
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90 crore tax deduction approved! Delhi HC allows 54F income tax deduction for buying multiple floors! Here's what it means for you
Is owning multiple floors in the same residential building equivalent to owning more than one residential property? And if that is the case, will the concerned individual not be eligible to claim a long-term capital gains (LTCG) exemption from the sale of his/her capital assets under Section 54 of the Income Tax Act?
In a recent verdict, the Delhi High Court noted that ownership of multiple floors in the same building does not amount to owning more than one residential property, a prerequisite for claiming long-term capital gains exemption under Section 54F.
“We find it difficult to accept that, in the given facts, different floors of a house are required to be considered as multiple residential houses,” ruled the high court.
Read on to know the tax-related implications of this judgment and how this will impact homeowners across the country.
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