House property

yes, you can buy one more house property and can avail exemption u/s 54.

you can do it as per  sec 54f

but the deduction will be=Cost of new house  ×
Capital Gains  ÷ Net
consideration being
Full value of
consideration less
Expenses on transfer

Originally posted by : manoj
	you can do it as per  sec 54f but the deduction will be=Cost of new house  × Capital Gains  ÷ Net consideration being Full value of consideration less Expenses on transfer

Exemption u/s 54F is available when a capital asset other than residential house property is sold. therefore in this case exemption u/s 54F is not available.

For the property which you constructed, to the best of my knowledge there is no exemption attached. Because the condition is three years after the sale for construction or on year before or two years after the purchase of property.

You can deposit the amount in capital gain deposit scheme, which you can get at banks within 6months and can be kept there for maximum of three years. It can be used  for purchase of new house property or for construction.

Another alternative is you can deposit them in NHAI bonds subject to the maximum of Rs. 20 lakhs.

The Maximum ceiling u/s 54EC for Bonds is 50lacs.

Hi.. Manish & Sai,

AS per your answer I have two option as below

1) Invest in NHAI or 54 EC

2) Purchase of new House property upto the value of Capital Gain to save C.G. tax

eventhough we have currently 2 house (1 let out & other self)

Request you to correct me if I am wrong

Agree with Manish & Sai Answer..............