Section 54f query

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I have a query regarding Exemption under Section 54F of the Income Tax Act. I understand the condtions for claiming the exemption say that it will be availale for 1 Residential Property either purchased one year before or 2 years after the transfer or constructed within 3 yearsafter the trf and also says that the assessee should not own more than 1 house property on the date of transfer excluding the new house on which exemption is claimed.
My query is that I read in some book that the assessee cannot Purchase any other house property for 2 years or cannot construct any other ouse property for 3 years from the date of trf of the capital asset other than that 1 residential property in which investment is made for exemption and in case an investment is made in a second House property then the exemption provided earlier will become taxable. But this same thing is not stated in any other books i read.

I want to ask whether the said thing about a second house property is true and incase if such a condition is not true then -

If a Land was sold during the year and it attracted Long term capital gain and from the sale proceeds 2 separate residential houses were bought within the Financial year then can the exemtion be claimed for any ONE of these 2 Residential houses?

Replies (2)

The content regarding limitation on ownership of properties is correct.

Further, If you want to claim deduction u/s 54F on two residential properties, they should be adjacent to each other or connected in any other physical way. If not, you cannot claim benefit at all under that section. (not even one property) 

The condition is very strict: You may have Max one property besides the one you are currently planning to invest in and not more than one properties can be bought within the lock in period.

Thank you for the reply to my query. 
So suppose the said House property is bought in Jan 2015 and another one is bought in say June 2015 i.e. before due date of filling of return then should Exemption U/s 54F be claimed by me for the P.Y. 2014-15 return and reversed back  in P.Y. 2015-16 or should I just not claim it this year? I am asking for exam purpose


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