Sec 54 benefit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 August 2016 A person owns 2 residential properties on the date he invests LTCG ( arising on sale of another house) in purchase of another one residential house in India. Can he avail of sec 54 benefit?
If in stead of buying another residential house, he demolishes one of the house (out of the 2 he owns) and constructs a residential block of 4 floors within next 2 years, investing his LTCG on construction of the same, can he claim benefit u/s 54?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 August 2016 Section 54 benefit available for buying one residential house. Section 54 benefit not available for constructing residential block of 4 floors having more than one residential unit.

Querist : Anonymous

Querist : Anonymous (Querist)

08 August 2016 Thanks for your reply. Please also advise if there is any restriction on number of residential units already owned by a person investing LTCG amount in one new house, (like in 54F)? This person has 2 houses in his name at the time when he wants to invest LTCG amount in a third house.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 August 2016 In case of section 54 no restriction on holding a third house.

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