Capital Gains Exemption in case I own more than 1 House

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  1. mayil

    mayil New Member

    i am owning two house properties-one at trichy purchased on 1979 solely in my name and another flat at chennai jointly with my wife's name and my name purchased on 2011 . now i am planning to sell the 1979 purchased trichy property and reinvest the same at chennai.i am advised that selling the house property at trichy and buying at chennai will attract capital gains tax since i have more than one house property in my name. pl advise me .
    if ltcg exemption allowed under what section pl
    In case i transfer the property in my son's and daughter's name thro settlement deed then also they have to wait for more than three years to purchase property in their names with out payment of ltcg . pl enlighten me
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    Dear @mayil

    The condition that Capital Gains Exemption cannot be claimed if the taxpayer has more than 1 house is only applicable in case the capital gains exemption is being availed under Section 54F.

    In your case, as you are selling Residential House Property and purchasing another Residential House Property, therefore Section 54F wont be applicable. Section 54 would be applicable in this case.

    Section 54 is much more beneficial than Section 54F and can be claimed irrespective of the no. of houses owned by the taxpayer.

    So, you can go ahead and sell this house in your own name and purchase the new house as well in your own name.

    No need to transfer the house in the names of your children

    Feel free to ask in case of any further queries.
  3. mayil

    mayil New Member

    Namaskaram sir i really thank u from the depth of my heart for the clear cut to the point reply you have given to my query i pray GOD to bless you with all the good in this world You have replied to this query around 23.00 hrs moves my heart so much i have no words to express my thanks to you

    T m Mayil vakanam
    gaurav_kumar likes this.
  4. gaurav_kumar

    gaurav_kumar Well-Known Member

    Thankyou @mayil for your kind words :)
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