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Capital gains

camahesh (CS) (57 Points)

13 October 2018

CAPITAL GAIN - I HAVE SOLD MY 2 houses and LTCG ( Long term Capital Gain) out of both is Rs 5 Lakh and Rs 6 Lakh .............now i have purchased 1 HOUSE for Rs 12 Lakh so would i get full exemtion ...as i have sold 2 and purchased only 1 house

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5 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (182828 Points)
Replied 13 October 2018

Yes, you can claim the exemption u/s. 54 for both the LTCGs.

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Uday Rathi (133 Points)
Replied 13 October 2018

Exemption u/s 54 is available for purchase/construction of one residential house property.

You can claim deduction only for one unit not for both.
Therefore maximum deduction can be 6Lakh.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (182828 Points)
Replied 13 October 2018

There is no restriction placed in section 54 which restricts exemption only in respect of sale of one residential house. Even if assessee sells more than one house in the same year and the capital gains is invested in a new residential house, the claim of exemption cannot be denied if other conditions are fulfilled. [DCIT v. Ranjit Vithaldas [2012] 23 tax mann. com 226 (ITAT-Mum)]

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