Capital Gain on residential property

Hi, You can save taxes on LTCG (long term capital gains) under section 54. Kindly go through below article; http://www.relakhs.com/how-to-save-capital-gains-tax-on-sale-of-land-house-property/  

Thanks Sreekanth, Just wanted to clarify that as I have 2 houses on my name (out of which 1 i will sell and acquire another 1) will I still get exemption under section 54. Is there any clause that there should be only 1 house on my name else I will not get exemption. Can you please explain the below condition I see on the Income tax website for section 54. "With effect from assessment year 2015-16 exemption can be claimed only in respect of one residential house property purchased/constructed in India. If more than one house is purchased or constructed, then exemption under section 54 will be available in respect of one house only. No exemption can be claimed in respect of house purchased outside India." Thanks, Imran.  

Hi, I agree that there are mixed reviews/opinion w.r.t num of residential properties eligible for Section 54. I believe that number limit (one residential property) is for section 54F.  Section 54F clearly states that ') owns more than one residential house, other than the new asset, on the date of transfer of the original asset'...... Whereas, under Section 54 (as per budget 2014) it does not talk about already owned properties. It only says that one can not claim LTCG exemption by investing in tow or more properties. Section 54 is available if the amount is invested in 1 Residential house situated in India. Anyways, I will check again on this with one of my CA friends and will again update this thread.

Thanks. Will wait for your final feedback.

Hi Sreekant, Awaiting your valuable advise. Thanks.

Hi...As soon as I get an update from my friend, will post it here. Guess he is busy with Tax filings.  Even I am eager to hear from him on this topic :)