1. Yes.

2.  STCG + LTCG exemption claimed under old property.

I need definiteive advice on the following:

1. Once the residential property is sold and the long term capital gain(indexed) is re-invested in another house property, can the new house be sold any time thereafter?  I have been given to understand that there is no time limit for holding the new acquired property and it can be sold at any time thereafter, subject to provision for short termcapital gain or long term capital gain tax as applicable, but LTCG Tax on property sold earlier is not payable. The new transaction would be treated as fresh transaction subject to STCG or LTCG Tax as per existing provisions. Definitive clarificaiton is requested.

2. Can the Long term Capital Gain on house property be invested in, say, commercial premises, without LTCG Tax being applicable?

p.s. would like to clarify that at present, there is no other house property held by the person, other than the one which it is intended to sell.

thank you.

" Once the residential property is sold and the long term capital gain(indexed) is re-invested in another house property, can the new house be sold any time thereafter?  I have been given to understand that there is no time limit for holding the new acquired property and it can be sold at any time thereafter, subject to provision for short termcapital gain or long term capital gain tax as applicable, but LTCG Tax on property sold earlier is not payable !!!. The new transaction would be treated as fresh transaction subject to STCG or LTCG Tax as per existing provisions. Definitive clarificaiton is requested."

For your understaning...... let me reproduce the rule......... as follows........

Section 54. 

(1) Subject to the provisions of sub-section (2), where, in the case of an assessee being an individual or a Hindu undivided family, the capital gain arises from the transfer of a long-term capital asset, being buildings or lands appurtenant thereto, and being a residential house, the income of which is chargeable under the head "Income from house property" (hereafter in this section referred to as the original asset), and the assessee has within a period of one year before or two years after the date on which the transfer took place purchased, or has within a period of three years after that date constructed, one residential house in India, then, instead of the capital gain being charged to income-tax as income of the previous year in which the transfer took place, it shall be dealt with in accordance with the following provisions of this section, that is to say,—

 (i)  if the amount of the capital gain is greater than the cost of the residential house so purchased or constructed (hereafter in this section referred to as the new asset), the difference between the amount of the capital gain and the cost of the new asset shall be charged undersection 45 as the income of the previous year; and for the purpose of computing in respect of the new asset any capital gain arising from its transfer within a period of three years of its purchase or construction, as the case may be, the cost shall be nil; or

(ii)  if the amount of the capital gain is equal to or less than the cost of the new asset, the capital gain shall not be charged under section 45; and for the purpose of computing in respect of the new asset any capital gain arising from its transfer within a period of three years of its purchase or construction, as the case may be, the cost shall be reduced by the amount of the capital gain.

(2) The amount of the capital gain which is not appropriated by the assessee towards the purchase of the new asset made within one year before the date on which the transfer of the original asset took place, or which is not utilised by him for the purchase or construction of the new asset before the date of furnishing the return of income under section 139, shall be deposited by him before furnishing such return [such deposit being made in any case not later than the due date applicable in the case of the assessee for furnishing the return of income under sub-section (1) ofsection 139] in an account in any such bank or institution as may be specified in, and utilised in accordance with, any scheme which the Central Government may, by notification in the Official Gazette, frame in this behalf and such return shall be accompanied by proof of such deposit; and, for the purposes of sub-section (1), the amount, if any, already utilised by the assessee for the purchase or construction of the new asset together with the amount so deposited shall be deemed to be the cost of the new asset :

Provided that if the amount deposited under this sub-section is not utilised wholly or partly for the purchase or construction of the new asset within the period specified in sub-section (1), then,—

 (i)  the amount not so utilised shall be charged under section 45 as the income of the previous year in which the period of three years from the date of the transfer of the original asset expires; and

(ii)  the assessee shall be entitled to withdraw such amount in accordance with the scheme aforesaid.

Explanation.—[Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.]

"Can the Long term Capital Gain on house property be invested in, say, commercial premises, without LTCG Tax being applicable?"

NO