INCOME TAX1 Oct 2026
Sold your house and built another on land owned by your wife? ITAT ruling clarifies the tax treatment | Mint
A Chennai tax tribunal allowed about ₹63 lakh of Section 54 relief to a man who sold an inherited house and built a new one on a plot registered in his wife's name. It matters if you sell a home and build another. The tribunal treated land and construction separately, rejecting the plot cost. So keep your construction bills and a valuation report ready.
Key Statutory Highlights
- The Chennai ITAT allowed about ₹63 lakh of Section 54 relief for a house constructed on a plot registered in the taxpayer's wife's name.
- The ₹12.38 lakh plot cost was rejected because the plot was bought around 17 months before the inherited house was sold.
- The taxpayer supported his claim with a registered civil engineer's valuation report that separated the land value from the construction value.
Actionable Advice for Taxpayers / Founders:If you sell a residential property and build a new house on land held by a family member, get a registered civil engineer's or valuer's report that shows land and construction costs separately, and check the Section 54 timelines with your CA before claiming the relief.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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