Capital gains exemption on sale and purchase of house

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Hi, I want to sell my 2 residential flats and invest the proceeds in a new flat.

Will I get relief from tax on capital gains from the sale of 2 flats? The gains are Long Term Gains.

This question has popped up in my mind after reading in many online articles that "you should not own more than one house, besides the house you are investing in." Link to the article:  https://articles.economictimes.indiatimes.com/2013-01-12/news/36296324_1_capital-gains-tax-tax-exemption-tax-calculation

Also found the same language at: https://businesstoday.intoday.in/story/property-selling-profit-lowering-tax-liability/1/189407.html

Any help would be appreciated. 

Replies (11)

There have been cases where the assessee has been allowed to avail exemption when purchasing one flat from a sale proceeds of selling two flats.

Yes u have such option u/s 54

If possible once go through all the subsections of 54 and match it with your case sir.....

Hmmmmmmmmmmm Correct
Sir, there is exemptions u/s 54, 54F, 54GB, 54EC for the capital gain arising from the sale of house property..however, every section contains different conditions to be fulfilled to avail the exemption..in your case, where you want to sell two houses and buy another house, sec 54 and 54f comes into light.. But u/s 54F the assessee(you) must not own more than one residential house on the date of transfer.. PS: the assets or house property must be of long-term capital assets in nature. And you're not allowed to transfer such hp within 3 years.
There's no condition like ownership of single house only on the date of transfer and all u/s 54..

section 54F is applicable on sale of long term capital asset other than house property.. In your case it is house propety... So section 54 will be applicable in this case... Moreover, Section 54 does not contain any condition regarding owning of more than 1 house property.... U can claim exemption under section 54......

 

if a person purchases a new house  using the Capital gains  in the name of  wife can he claim the exemption as  wife is natural benami recognised under law?

Yes,he can.........

You should review all 54 sections..

Is there any option of investment when capital gain arising from sale of house in income tax rule?

My boss is selling his flat and the capital gain is being arised. It is of 3 years old property. So any option to save tax on this capital gain?

investment in Government bonds are available for deduction in gross total income ?

Any other options please guide.

Thanks in advance.

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