Exemption under Section 54-capital gain, Income Tax

[VENKAT S]

If a person has multiple houses (eg: four) and sells one of them and reinvests in another house, can he claim relief under sec 54 of the Income tax Act?

Is there any condition that he should not hold more than one house (like in sec 54F)?

Posts / Replies

[Ashwani Garg]

Yes, the exemption under section 54 would be available on purchase of ONE residential house. In case, more than one residential house are purchased, the one having the highest price could be considered for the purpose of the above section.

[Ashwani Garg]

The conditions laid down in section 54F regarding ownership of multiple houses is different and should not be mixed with section 54.