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Exemption u/s 54

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Raghavendra Bapat

23 Points Posted on 13 July 2019

I wish to know whether individual having two residential house properties sells one of them and purchase another residential house property.can he claim deduction u/s 54.Is there any restriction in the law that person claiming exemption u/s 54 should not own another residential property on the date of sale of the residential property for which he wants to claim exemption u/s 54

Replies (2)

Mujeeb rahuman

Audit assistant

80 Points Posted on 13 July 2019

refer 54 f

Suresh Thiyagarajan

Student

2612 Points Posted on 14 July 2019

1. According to sec 54, the exemption will be available for CG in case of sale of residential property (long term) and subsequently purchased another residential property within a period of 1 year before or 2 years after.
2. There are few conditions to claiming exemption u/s 54. Refer the relevant section for the same.
3. To answer your question there are no restrictions for holding more than one residential property for claiming exemption u/s 54. Such restrictions are imposed in sec 54F (sale of CA other than residential property and purchase of residential property)
Please correct me if the above solution has an alternative view.