Exemption from long term capital gains tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 July 2011 one of my client has sold his house property in may 2011, and is in receipt of long term capital gain.
Now pl. can any one clarify me on the following;

1. Can he reinvest in more then one house property?
2. What are the other exemptions available?
3 What is the time frame?
And said client has given the power of attorney and received the entire sum by cheq. and handed over the possession to the buyer, hence I construed as sale, is it correct?

Pl clarify

U S Sharma

U S Sharma (Expert)
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17 July 2011 1. No, single property, alternate clause that he must not have another property in his name

2. deposit in capital gain account within 6 month

3. for cap gain a/c 6 month or before filing of return.
for new property ....buy within 1 year or construct within 3 years

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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18 July 2011 Against Slae of your house you can buy only one property and that will be exempted u/s 54. If the capital gain is from other assets then 54F is applicable.

54EC can be claimed but the limit is only 50 lacs.

The lock in period is 3 years. The lock in period for purchase of new house is also 3 years if you sale the new house before 3 years then the short term capital gains shall be applicable.

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