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Section 54.capital gain

dbhasakararao (consultant) (64 Points)

23 May 2022

sir one client previously had two residential houses. This year he sold a site. With that coming capital gain amount he wants to buy two more residential houses. This is the first time in his life that he is seeking a capital gain exemption. so he is eligible or not to get capital gain exemption us 54. Please...

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3 Replies

Kev Men (788 Points)
Replied 23 May 2022

If out of 2 residential houses, the assessee sells 1 residential house and wants to buy 2 more residential houses out of the sales amount, Section 54 exemption can be claimed if the 'capital gain' amount is less than Rs. 2 crores, and buys the 2 residential houses within the time-limit prescribed and he uses this option only once.

This is as per the proviso 1 and 2 of section 54(1) read with section 54.

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sabyasachi mukherjee (27248 Points)
Replied 24 May 2022

Here value is not mentioned. As a result of the fact everything can't be assumption. He can utilize the capital gain amount to purchase a new house or construct a residential house.

dbhasakararao (consultant) (64 Points)
Replied 24 May 2022

The client has two houses and two sites. One of them sold the site. He wants to buy two more houses with the capital gain coming from them. Will he get capital gain exemption. because he already has two houses. Also wants to buy two more houses. Please