It looks you have converted a garage & car parking space into a dwelling unit. If it is an authorised construction and you have an occupancy certificate, then it can be categorized as a residential house and you can then claim exemption u/s 54, subject to fulfillment of other conditions specified therein. However, it is a matter of fact and you should have sufficient evidence to establish that you are using it as a residential house, even if purchased as a garage & car parking space and later converted into a residential house.
Garage and car parking space
I buy only & only a property titled as "garage & car parking space" of 480 sq ft comprising of 2 garages without a flat of a G+3 building having the plan sanctioned as a residential property with two flats situated in the ground floor on the back of the said property. The said property is constructed as a separate entity with 3 sides (the back one & two sides) sealed with concrete walls & front side with a gate & collapsible shutter opening to the road. It has an inbuilt bathroom also. The back wall has a door which is in the same line with other 2 doors of entry in the 2 flats situated in the ground floor. Pl let me know that whether it will be treated as residential property & qualify for exemption u/s 54 of IT Act
Asked 9 years ago in Income Tax
Residential use building means a converted or purpose-built building comprised solely of dwelling units, rooming units, or any of them and includes detached; linked-detached; semi-detached; duplex, three-unit dwellings, townhouse dwellings, stacked dwellings, apartment dwelling, low-rise, and apartment dwelling, mid-high rise, rooming houses, rooming houses, converted, bunk house dwelling, group homes, retirement homes; and retirement homes, converted; and residential use and residential premises have corresponding meanings.
You can claim the benefit of the same subject legality of your possession and the relevant document for proving your residency in the building
If plan is sanction as residential property and you prove said property is going to be used as residential purpose then section 54 is available to you. provided you have obtained the permission for resident converted from garage from municipality or concerned authority.
Yes it can be considered as residential property.
No it will not be treated as residential property as in the sale deed it will be clearly mentioned as garage and car parking space.
Dear Sir,
I doubt if it will be considered as a Residential property just based on the Facts provided by you. You may have to support it with documentary evidences like your Floor Plan, Occupational Certificate stating your block as a residential unit, as well as your Sale Agreement. If the documents are in your favour, then you may think of considering it as a Residential property.
Hope this clarifies your query.
Please feel free for any further clarifications.
Thanking You.
Regards,
CA Rohit R Sharma
BCOM, CA, LLB - GEN, CERT. FAFP, CERT FAFD.
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