Capital gain form sale of residential house property.

Dear Pawan,

With effect from assessment year 2015-16 exemption can be claimed only in respect of one residential house property purchased/constructed in India. If more than one house is purchased or constructed, then exemption under section 54 will be available in respect of one house only. No exemption can be claimed in respect of house purchased outside India.

However larger benefits of Section 54 is that one can hold a number of properties as on the date of transfer and still claim exemption on the gains.

The answer of your query is you can claim exemption u/s 54 out of capital gain arises from selling of second house property. But exemption can not be claimed if more than one house is purchased in one assessment year.

Dear friend,

It is possible, Kindly refer CIT v. Ranjit Vithaldas [2012] 137 ITD 267 (Mum.).

Yes, It is possible.

I miss read the query it was actually asking for capital gain for second selling but I thought to invest in purchasing of more than one house propery in same assessment year.

thank you  shreesh sir and akhil sir

is there any effect in answer if wife has already one residential house property and the asked question was related with husband?

Dear Pawan,

Answer will be same due to the provision of section 54 that One can hold number of property at the time of trnasfer but also can clam exemption. Even if husband has more than 1 house then also he can claim exemption.