Here, read this example on how the Assessing officer interpreted the section 54F and put a restriction on tax exemptions. The tax payer had to fight it out in high court for a seemingly straight forward issue. The real problem here is lack of clarity in income tax rules.
Have you tried to work out capital gains for NRIs ever? It's a quagmire. Try the forums at r2iclubforums.com and you'll see the same question being asked again and again. Why? Because tax rules are designed to be difficult for common man to interpret clearly.
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Here, read this example on how the Assessing officer interpreted the section 54F and put a restriction on tax exemptions. The tax payer had to fight it out in high court for a seemingly straight forward issue. The real problem here is lack of clarity in income tax rules.
http://www.moneycontrol.com/news/tax/joint-ownershiphouse-va...
Have you tried to work out capital gains for NRIs ever? It's a quagmire. Try the forums at r2iclubforums.com and you'll see the same question being asked again and again. Why? Because tax rules are designed to be difficult for common man to interpret clearly.