Capitalgains on house property

This query is : Resolved

Clifford Joseph (Querist)
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13 March 2014 CAN CAPITAL GAINS ARISING FROM THE SALE OF TWO RESIDENTIAL HOUSE PROPERTIES BE CLUBBED TOGETHER TO BE INVESTED INTO A SINGLE RESIDENTIAL PROPERTY OF GREATER VALUE? DO WE GET CAPITAL GAINS EXEMPTION AS PER SECTION 54 IN THE ABOVE CASE WHEN GAINS OF TWO HOUSES ARE COMBINED AND INVESTED INTO A SINGLE RESIDENTIAL PROPERTY?

CA Mahavir Shah

CA Mahavir Shah (Expert)
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13 March 2014 No both can not be combined.
But you can get deductions, based on how many conditions you are satisfying to claim such deductions.

Clifford Joseph

Clifford Joseph (Querist)
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13 March 2014 Can you please explain the conditions that should be satisfied in this case?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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14 March 2014 Dear Clifford,

yes you can. under section 54, there is no such condition. As long as both the properties sold and the new property bought are residential, you would get exemption.

Clifford Joseph

Clifford Joseph (Querist)
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14 March 2014 Thanks for the information Nikhil. Incase you come across any case laws depicting the same situation as in this case, please let me know as case laws can build a solid foundation for taking a decision in combining the gains in the given case.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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14 March 2014 please refer ‘DCIT vs. Ranjit Vithaldas’ (2012) 23 taxmann.com 226 (Mum.),