Dear Ravi,

U/s 54 Assessee can buy "N" number of houses...No isssues..so exemption will be allowed in respect of both the houses.

But u/s 54F, assessee can hold only 1 house other the house transferred, Therefore in this case the exemption will not be allowed at all..

Section 54 allows this exemption...

Whole of the amount can be exempted from tax.. The only condition is sold property is residential and purchased too should be residential only

Amir, section 54F is not allowed for sale of RESIDENTIAL PROPERTY

I think your query came because section 54 says the proceeds should be invested in "A residential house".

That does not mean one residential house.

See S Ananda Basappa Vs CIT (Karnataka), 309 ITR 329, 2009.

Your case is a ditto... :)

ya it will be expemted from tax

can claim exemption U/s 54 and not u/s 54f......

Ya Dhiraj,

U r rite my mistake, actually just before that i answered his query on sale of land so just mixed the two..

Woooaaa multi performer.... grt man....

Come on yaar don't pull my leg now..........

Assessee can claim deduction u/s 54 for purchase or construction of residential house property.

In this given case Sec.54F in not attracted because investment can be made other than house property

Under Section 54, the assesse cannot buy "N" no. of houses.He can only invest in "ONE RESIDENTIAL HOUSE".Many authors are of the opinion that investment can be made in any no. of residential houses u/s 54 but it is not so as was decided in the case of K.C.Kaushik.