Section 54 of IT Act

Hi,

I own three three residential flats. Out of which I want to sell one residential flat and buy a new residential flat out of Long Term Capital Gain amount. Can i claim exemption under Section 54 of IT Act for the above investment (Because Section 54 does not restrict owing multiple properties when selling one of the properties)?

Can anyone please clarify?

Regards

K M Ganes

Coimbatore

 

Replies (8)
Quick Summary
This discussion clarifies whether an individual owning multiple residential flats can claim exemption under Section 54 of the IT Act when selling one flat and purchasing a new one with the capital gains. The consensus is yes, as the restriction on owning more than one house applies to Section 54F, not Section 54. Participants also briefly touched upon the time limits for purchase or construction under Section 54.

Yes, you can claim an exemption under section 54. The restriction of "owning not more than 1 house" is under section 54F and not under section 54.

Thanks Mr. Ayush. 

Yes Section 54 can be availed

Thanks a lot Mr. Souray, for your clarification.

Your welcome
But there is a period within which you hv to purchase.

Thanks Mr.Mukerjee. Yes, I am aware of time norms within which to purchase / construct. 

That sounds better.

Otherwise the very essence of Sec 54 goes for a toss

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