Ltcg on sale of property if own two or more properties

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 October 2012 Mr X currently owns three residential properties :-

Propoerty No 1 : Bought in Jan 2001 for Rs 1 Lakh (Single Ownership in name of Mr X)

Propoerty No 2 : Bought in 2005 and residing in this property (Single
Ownership in name of Mr X)

Property No 3 : Bought in July 2010 and still under construction till Oct 2012 (Single ownership in name of Mrs X but home loan paid thru a joint home loan account and Mrs X is a seperate income tax assessee)

Mr X wants to sell Property No 1 for Rs 5 Lakh in Dec 2012 and plans to buy a new residential property within a period of one year after sale. Purchase price of new property will be more than Rs 5 Lakh.

Query is :-

Will Mr X be eligible to avail deduction against LTCG tax applicable on sale of Property No 1 even if he owns one more residential property - Property No 2)

Thanks