Capital gain exemption 54 on sell of 2 house

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 March 2012 Dear Sir/Madam,

I require your guidance in following matter:

Is capital gain exemption u/s 54 available if two houses is sold in 2 different consecutive years and purchase 1 house for getting exemption under section 54 for both houses...

Thanks in advance..

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

29 March 2012 Let us take an example.

You sell house 1 in FY 10-11 and deposit the capital gain in a Capital Gain Account Scheme before the due date of filing the return. You are allowed exemption u/s 54

Then you sell house 2 in FY 11-12 and invest the total capital gain (house 1+house 2) in a new residential house property.

You are allowed exemption u/s 54 for the current year.

Exemption allowed in the Previous year remains intact.

Querist : Anonymous

Querist : Anonymous (Querist)

29 March 2012 Thanks a lot Sir....

Now it is clear we can take the benefit of exemption for both houses by buying one housing property....

If possible could u pls provide any case law related to this.....

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now