Exemption u/s 54

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niki (Querist)
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30 September 2009 Is the exemption u/s 54 of the I. T. Act restricted to long-term capital gains arising out of sale of only one residential property during the previous year?

Can an assessee avail exemption u/s 54 in respect of LTCG from sale of two separate properties and investment in two separate properties as two separate transactions (exemptions) during the previous year? i.e.
Transaction / Exemption 1 = Sale proceeds (incl. LTCG) of 1st flat – invested in a residential flat at Delhi

Transaction / Exemption 2 = Sale proceeds (incl. LTCG) of 2nd flat – invested in a residential flat at Pune

Thanks & Regards,
Niki

CA Puneet Jethliya

CA Puneet Jethliya (Expert)
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01 October 2009 No,
any assessee can get exemption u/s 54 whether he sold one residential house or more.

as per question, such person will get both exemption on both investment.