Section 54 capital gain

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pawan (Querist)
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02 March 2013 MY CLIENT HAS SOLD A HOUSE IN NOVEMBER 2010 FOR RS. 90 LACS. AFTER CALCULATING LONG TERM CAPITAL GAIN COMES TO RS. 50 LACS. IN THE MONTH OF MAY 2011 HE PURCHASED A RESIDENTIAL FLAT FOR RS. 20 LACS AT CHANDIGARH AND THE BALANCE AMOUNT OF CAPITAL GAIN OF RS. 30 LACS WAS DEPOSITED IN CAPITAL GAIN ACCOUNT IN THE BANK AND ITR WAS FILED CLAIMING THE PURCHASE OF HOUSE OF RS. 20LACS. NOW IN THE MONTH OF OCTOBER 2012 ANOTHER FLAT AMOUNTING TO RS. 30 LACS (WITHDRAWN FROM CAPITAL GAIN ACCOUNT) IS PURCHASED AT MUMBAI. NOW MY QUESTION IS THAT WHETHER MY CLIENT IS ENTITLED FOR EXEMPTION U/S 54 FOR THIS IIND FLAT PURCHASED AT MUMBAI .

@VaibhavJ

@VaibhavJ (Expert)
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02 March 2013 Hi

No, exemption u/s 54 is available only in respect of one house and not more than one.

Thanks!!

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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03 March 2013 The assessee is not entitled to exemption in respect of two flats situated in different places. Pavan Arya's case reported in 49 DTR 123 may be referred to.

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