Section 54 Exemption if owning 3 Houses

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?

 

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.