Capital Gains Exemption on purchase of 2 houses in different cities

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  1. rsa2303

    rsa2303 New Member

    I had sold my residential self occupied flat in Mumbai in Sep 2011 which resulted in a long term Capital Gain of say Rs.100. I then purchased 50% shares of another flat in Mumbai to reside in as i had already inherited 50% share and subsequently purchased another flat in Pune from the balance amount of Capital Gains. I also reside in Pune for approximately 2-3 days in a week due to my work.
    Can i claim exemption under section 54? Please do advise.
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    Yes, deduction is allowed in this case.

    However, budget 2014 introduced an amendment stating that you can claim exemption under Section 54 only for the amount which is invested in 1 Residential Property.

    The amount invested in the 2nd residential property will not be allowed to be claimed as an exemption
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