Section 54f query

Rohit (Student CA Final ) (25 Points)

19 September 2015  

I have a query regarding Exemption under Section 54F of the Income Tax Act. I understand the condtions for claiming the exemption say that it will be availale for 1 Residential Property either purchased one year before or 2 years after the transfer or constructed within 3 yearsafter the trf and also says that the assessee should not own more than 1 house property on the date of transfer excluding the new house on which exemption is claimed.
My query is that I read in some book that the assessee cannot Purchase any other house property for 2 years or cannot construct any other ouse property for 3 years from the date of trf of the capital asset other than that 1 residential property in which investment is made for exemption and in case an investment is made in a second House property then the exemption provided earlier will become taxable. But this same thing is not stated in any other books i read.

I want to ask whether the said thing about a second house property is true and incase if such a condition is not true then -

If a Land was sold during the year and it attracted Long term capital gain and from the sale proceeds 2 separate residential houses were bought within the Financial year then can the exemtion be claimed for any ONE of these 2 Residential houses?