Long term capital gain and section 54

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 October 2014 Hello Sir,
I have a query and i need your help.Kindly see the details below.

1. I sold a house which was purchased in the year 2007. House was given on rent when i sold it. Purchase price was 25 Lac and Selling price was 38 Lacs

2. I also sold another house where i was living. It was purchased in August 2011 and sold in September 2014. Purchase price was 35 Lacs and selling price was 70 Lacs. Will i get the benefit of section 54 for both the sales.

3. Now i am planning to reinvent the money which i have got from these two transactions.

Please advice how much is the capital gain on the transaction and can i invest all in the new house whose cost is more than the gains i have made.

Querist : Anonymous

Querist : Anonymous (Querist)

05 October 2014 Please answer

Nikhil Kaushik

Nikhil Kaushik (Expert)
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05 October 2014 you are eligible for section 54. however, ensure that the investment is made within 1 year if you are buying a constructed house or within 3 years if you are constructing a house.

yes, you can invest in the house whose cost is more than the gains you made.

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