Hello,
With effect from Assessment Year 2021-22, the Finance Act, 2020 has amended Section 54 to extend the benefit of exemption in respect of investment made in two residential house properties. The exemption for investment made, by way of purchase or construction, in two residential house properties shall be available if the amount of long term capital gains does not exceed Rs. 2 crores. If assessee exercises this option, he shall not be entitled to exercise this option again for the same or any other assessment year.
My query is, an assese sold one property in 2021 with capital gain of 50 lac and reinvested the proceed in another 1 residential property. He sold another property in 2021 with captial gain of 2 cr and reinvested the entire proceed in another 1 residential property only. Is exemption applicable under section 54 for both properties?
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