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Reinvesting capital gain in residential house property

Tax queries 180 views 1 replies

Ram K

216 Points Joined May 2015

Dear Sir/Madam,

I understand that if you reinvest the long term capital gains obtained by selling shares into a house property then you are exempted from Long term capital gain tax. And if I correctly understand you have to do it in 2 years after getting the gains.

I also understand that you can reinvest in only one house property.

What is unclear is..is this exempted if I reinvest in a new one house property, but in past I already have 2 properties on my name, purchased thru income sources from savings out of my salary.

Thanks and regards.

Replies (1)

Prajwal Shetty

Artical Assistent

237 Points Joined July 2016

1 st LTCG on shares is exempt up to Rs 100000, subject to some provisions.
2 nd To take benefit of sec 54F the assessee should not own more than 2 houses (including new house in which he intends to invest the capital gain). So in your case u own more than 2, u are not eligible for sec 54F.