10 February 2016
If someone has sold his residential house property and the long term gains arising out of it has distributed among their 4 sons. and the amount has been utilized for purchase of 4 different residential houses in different locations. Can all the 4 properties being on different locations can be allowed exemption u/s 54.?
11 February 2016
Assessee (Father) can avail exemption of one house only as the Finance Act clarified this rule u/s 54 in the last budget. As the capital gain is taxable in his hands, the benefit of investing in 4 different houses is not available to him. The new house can be registered in the name of his son/s as the provision requires re-investment out of the same funds and not necessarily in the same name.
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