Am I eligible for Capital Gains Exemption if I own more than 2 Flats?

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  1. athithya

    athithya New Member

    i am co owner of 2 flats. now i sold one house site that capital gains could be re - invested in residential house. shall i edible for exemptions under section 54F
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    As you have sold a Residential Property, you are eligible to claim exemption under Section 54.

    Section 54F is for Assets other than Residential Property.

    PS: Section 54 is better than Section 54F
  3. NitinJain

    NitinJain New Member

    Dear Mr. Gaurav,

    First of all really appreciate your selfless inputs on queries posted by any user.

    My query is regarding capital gains from sale of property. While I could find answers to most of my queries on capital gains from existing threads, I have specific scenario which I wanted to clarify. Below are the data points that I will be referring to in my queries further:

    Property A : Bought in 2008 (currently on rent)
    Property B : Bought in 2011 (currently under construction and taken on loan)
    Property C : Planning to purchase in near future by selling property A (will be buying before selling property A)

    I currently hold 2 properties - Property A (on rent) and Property B (under construction and on loan). Now i am planning to buy another property - Property C on loan and within few months I plan to sell property A.

    Here are my queries in this regard:

    1. Can I buy property C before selling property A and still claim capital gains exemption from sale of property A ?

    2. If property C is bought in March 2015 (FY2014-15) and property A is sold in Aug (FY2015-15), would I still be able to claim exemption even though txns are happening in different financial years?

    3. While property C that I am going to buy (by investing gains from sale of property A) will be registered in March 2015, my other property B (currently under constr) is due for registration in next few months. If I am claiming capital gains exemption on purchase of property C from sale of property A already, would property B registration in next few months have any implication on capital gains exemption claimed ?

    Thanks in advance.
    Last edited: Jan 9, 2015
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