Exemption under Section 54 for LTCG

kindly help me in clarifying my doubts about exemption 54:

1. does it apply for vacant plot of land? agricultural land?

2. can you sell 5 properties for example to avail exemption upto 2 crores?

3. can reinvest in maximum 2 new properties? if you already have 5 properties, what happens?

4. you have property A for 5 years. you gift it to a family member and they immediately sell it. can they avail exemption 54 on sale of property A?

thank you.

Replies (4)
Quick Summary
This discussion clarifies doubts regarding the Section 54 exemption for Long-Term Capital Gains (LTCG). It confirms that the exemption does not apply to vacant or agricultural land. While you can sell multiple properties to avail the exemption, reinvestment in new properties has limitations, often considered a once-in-a-lifetime opportunity for up to two properties. The discussion also addresses scenarios involving gifted properties, confirming eligibility for the exemption in certain cases.

1. No

2.  You may, exemption can be claimed by sell of HPs.

3. No problem. You can get exemption. But for investment in 2 HPs, its once in lifetime.

4. Yes, eligible.

Thank you
1. it does not apply for vacant plot of land.
2. Yes
3
tenure is there within a spe ific span .
4.They can avail 54 exemption.

You are welcome ..                

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