Section 54 Exemption if owning 3 Houses

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  1. vrharania

    vrharania New Member

    I have three ownership residential houses namely A, K and T assessed under income tax as Rental income from house property for the last 8 years. Now i want to sale house T costing rs 7 lacs for rs 59 lacs there by making long term capital gain [LTCG] and want to buy new house P investing the entire LTCG from house T. Would my LTCG exemption u/S 54 on house T be affected in any manner as i own three houses at the time of sale?
     
  2. Manoj Mehra

    Manoj Mehra Active Member

    Exemption under Section 54 is allowed irrespective of the no. of houses owned by you.

    So, if you sell residential house property T and purchase residential house property P - then the entire capital gains reinvested in property P will be reinvested.

    Please note that both Property T and Property P should be residential flats.

    If it is a residential vacant plot - then exemption wont be allowed under Section 54 and would be allowed under section 54F. Section 54F exemption wont be applicable in your case as you already own 3 houses.
     
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