Capital gain

yes by way of investing the sale proceeds in a residential house property within 3 years, he can get exemption u/s 54F......

Originally posted by : Sunshine...
	yes by way of investing the sale proceeds in a residential house property within 3 years, he can get exemption u/s 54F......

Provided the assessee doesnt owns more than one residential house

Yes, you can get the exemption u/s 54F by investing the sale proceeds in Residential House. Section 54F is a benevolent provision meant for tax relief  where the sale consideration is deployed in acquisition or construction of a residential house by the taxpayer.

Key factors governing the tax exemption under this section are: 

1. 1. Sale must be of any long-term capital asset other than residential house; 
2. 2. On the date of sale, the taxpayer must not own more than one residential house; 
3. 3. Net sale consideration must be deployed in acquisition or construction of a residential house within the specified time i.e., before 1year or after 2years; and 
4. 4.No acquisition or construction of any more residential house during the specified Lock-in period.

agree with Mr. Suresh & Sunshine

consider section 54 f