Ramanathan (Article) (40 Points)
18 December 2017Hello,
I have sold 2 residential house property in india, the capital gain from the 1st property is 15,00,000 and the 2nd property is 10,00,000. I have purchased one House property worth of 75,00,000. Now my question is can I claim the HP purchased for 75L against these two capital gains u/s 54?
Prajjwal Kaushik
(Finance Professional)
(6216 Points)
Replied 18 December 2017
The language of the Income-tax Act is not much clear on the topic and doesn't provide explicitly for this. It has been given under the section that the sales proceeds cannot be invested in more than one house. However, it has not been given that whether sales of more than one houses can be invested into one single house, to get the exemption under section 54.
However, there have been a few case laws in this regards wherein, the decision has been in favor of the assessee by the courts.
Anurag lohiya
(Bara bazar)
(262 Points)
Replied 19 December 2017
Ramanathan
(Article)
(40 Points)
Replied 24 December 2017
Thank you for your reply, What if I sell 2 houses, do i get buy 2 different houses and claim exemption u/s 54 respectively for the houses that i had sold?
(I hope my question is clear, if not pls let me know ill ask by the way of an example)
CAclubindia
