My client is owner of 4 residential house properties. He wants to dispose off one HP and invest in new residential HP. Can he get deduction under section 54 from long term capital gain ?
Plain reading of the said section says that the assessee should invest in one new residential HP. But my doubt is that whether the assessee can claim exemption under this section if he is already owner of 3 other residential properties. Kindly reply asap.
06 October 2015
The person can be owner of any number of properties. All that needs to be taken care is that the capital gains arising has to be invested in another house property. This new property has to be 'one'