At present I own 2 houses, the first one purchased in the year 1990 at a cost of Rs.2.25 lakhs situated at Trichy and the second one purchased in the year 2005 at a cost of Rs.13.0 lakhs situated at Sivaganga.
I am planning to sell the first house for a sale consideration of Rs.20.0 lakhs now. I have been a NRI for the last 10 years and is not filing IT returns. However I have recently applied for PAN and got one. If I choose to invest the capital gains from the sale of the first house in buying a flat at chennai whether exemption under section 54 is available to me. (even though I will be owning 2 residential houses on the date of transfer other than the new flat)
In other words whether one is entitled for tax exemption under section 54 even if he sells say all of the 3 or 4 houses owned by him and invests the entire proceeds in purchase of one sinle house of higher value?
Thanks & regards,
Siva
CAclubindia
