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Investment in Two Residential Houses

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This query is : Resolved

Suresh S. Tejwani (Querist)
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13 January 2026 An assessee does not own any residential house property on the date of transfer of a long-term capital asset (other than a residential house). The assessee proposes to purchase two residential house properties out of the capital gains.

In such a case, can the assessee claim exemption under Section 54F in respect of both the houses, or is the exemption restricted to investment in only one residential house?

Further, does the one-time option of investing in two houses (capital gains up to ₹2 crore) apply to Section 54F as well, or is it restricted only to Section 54?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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13 January 2026 Even though the provision is applicable only to sec. 54 IT act; but any adjacent flats/HP are considered as a single residential HP for the sec. 54/54F IT act.

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