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Exemption u/s. 54 for self occupied and rented flats

Vasudev (Project Manager) (32 Points)

28 February 2017

Is exemption is available for self occupied house and rented house 2 Lakhs each separately or only 2 Lakhs total.

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2 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (180927 Points)
Replied 28 February 2017

It is proposed to adjust (total) loss under HP (whether single house or any more number) against other heads of income (section 24B, not section 54). Un-adjusted loss can be carried forward.

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debora M (BUSINESS DEVELOPMENT MANAGER) (1697 Points)
Replied 23 April 2020

The Capital Gains Exemption is allowed only if the Capital Gains exemption is invested in construction/purchase of 1 residential house. Irrespective of the no. of houses already owned by the person, if he invests the capital gain in construction/purchase of a single residential house – then capital gains exemption can be claimed. [Introduced vide Finance Act 2014]
As an exception to the above rule, in cases where the amount of Capital Gains does not exceed Rs. 2 Crores, the capital gains exemption would be allowed even if the investment is made in purchase/construction of 2 residential houses. However, this exemption of purchasing 2 residential houses can be claimed only once. This exemption once claimed cannot be claimed in again in any other year. For all other years, investment should be made in construction/ purchase of 1 residential house only. [Introduced vide Finance Act 2019].