Capital gainTax on selling one residential flat out of multiple

Share
Share This Thread
  1. Dear Sir,
    I have noticed in many Q&A forums that capital gain tax can be saved by reinvesting the amount in certain period but that is possible when you own only one residential property at time.
    I have five residential property and I want to sell only one of them. Can I save capital gain tax on this by reinvesting this amount in new fifth residential property.
    Regards
    Rk
     
  2. Shishir Nayak

    Shishir Nayak Member

    The restriction you are talking about is u/s 54F.
    But There is no restriction placed in section 54 which restricts exemption if you own more than one residential property. You can sell and avail exemption u/s 54.

    But Where more than one residential house is purchased out of the sale proceeds of one residential house, exemption u/s 54 can be claimed only in respect of one house, provided the other conditions of Sec 54 are satisfied.[K.C. Kaushik v ITO 185 ITR 499 (Bom.)(1990)]
     
  3. rudrabose

    rudrabose Active Member

    There is a condition for claiming exemption which says that the amount should be reinvested in another residential property purchased 1 year before or 2 years after the sale of the property.
     
Draft saved Draft deleted
Loading...
Similar Threads Forum Date
Docs needed by NRI seller for capital gains certificate Other Taxes Mar 18, 2018
Expenses while calculating capital gains Other Taxes Feb 10, 2018
Capital gains Other Taxes Oct 31, 2017
Saving Capital gain tax Other Taxes Sep 29, 2017
Capital Gains account - no plan to purchase property Other Taxes Sep 28, 2017