Long Term Capital Gain - Housing Property

I bought a residential house in Oct. 1996 and I bought a flat in joint names with my son and wife in Dec. 2011 by taking a home loan. I sold the old property in Feb. 2012. Now, I wish to purchase a separate flat from the long term capital gain from the sale of old property. Can I get the exemption under Section 54F for both the flats purchased i.e. Purchased in Dec. 2011(in joint names) and the other one which is to be purchased from the sale of old property.

asked Jul 23 '12 at 21:41 by Ravindra Gupta 111


As you sold a residential house, you should avail tax benefits u/s 54 (and not 54F).

But as per this section conditions, you can only take tax benefit by investing into single residential property and not more than one.

To save tax fully, your share in new property cost should be more than capital gains earned.

answered Jul 23 '12 at 23:02 by Pankaj Batra 5.2k320

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Asked: Jul 23 '12 at 21:41

Seen: 1,254 times

Last updated: Jul 23 '12 at 23:02