Vamshi Krishna Reddy Pathi (CA Practice ) (1 Points)
22 July 2024if an assessee sells a residential property within three years of purchase after availing tax exemption under section 54F and then buys another residential property. Whether since assessee invested sae proceeds of second house again in purchase of new house residential house with in period of two years, the exemption can still be maintained ?
CA Anoop Kumar Sharma
(Accounts Manager)
(1898 Points)
Replied 22 July 2024
As per my opinion first new house was sold within three years, the exemption claimed under Section 54F would be withdrawn. It means capital gains from the original sale would become taxable in the year in which the first new house was sold, irrespective of the subsequent investment in another residential house. But i also recommedated to you consult more professional.
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