Deduction u/s. 54 on Long Term Capital Gain

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This query is : Resolved

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This discussion clarifies whether an individual can claim deductions under Section 54 of the Income Tax Act for Long Term Capital Gains in multiple financial years. The scenario involves selling two properties and purchasing a new one within specific timeframes. The consensus is that as long as the purchase of the new property falls within the stipulated time limits after the sale of the old properties, deductions can indeed be claimed across different financial years.

Alex Fernandes

Alex Fernandes (Querist)
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08 September 2021 My Friend sold one flat on 11/12/2020 for Rs. 8 lacs. It was purchased 5 years back for Rs. 4 lacs.
He purchased another flat on 24/12/2020 for Rs. 28 lacs. He took some home loan to buy this flat. He sold another flat on 28/05/2021 for Rs. 13 lacs. It was purchased 5 years back for Rs. 9 lacs.
My query is that whether he can claim deduction u/s. 54 in both financial years .i.e. FY 2020-21 as well as FY 2021-22.