A person has sold house property resulting in long term capital gains. The person is already the owner of?



another house property. Can the person in question invest the long term capital gains in buying two house properties so as to avoid long term capital gains tax.

A person has sold house property resulting in long term capital gains. The person is already the owner of?
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One Reply to “A person has sold house property resulting in long term capital gains. The person is already the owner of?”

  1. If the capital gains from sale of a residential house are reinvested in purchase of another residential house then you get exemption under Section 54 of Income Tax Act, 1961.

    •If you purchase another residential house before selling old house, then you should sell old house within one year of purchase.

    •If you sell old house before purchase of another residential house, then you should purchase another residential house within two years of sale of old house.

    (purchase a residential house within a year of the date of transfer of old house or within two year after the date of transfer of old house)

    In case the assessee has purchased more than one house within the period prescribed in section 54, it is for the assessee to claim relief against the purchase of any one of the house, provided the other condi­tions mentioned in the section are satisfied.

    HMT





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