Can long term capital gain be avoided by selling one residential property and buying two residential properties for self use

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Dear pankajji ,

I have sold a property which was brought in 1987 ( residential) and now plan to buy two residential properties as would like to separate my son after his marriage. Can I avail long term capital gain tax if the whole amount is invested in two properties instead of one as this is the need of the hour and my son does not have any residential property in his name.

Thanks sharad

1 Answers

As per section 54, income tax benefit would only be available against a single residential property purchase.

Please note that new residential house property should be in your name only (single or joint). To save income tax fully, purchase cost of new property should be more than long term capital gains amount (computed with indexation rules).

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