Dear Sreekanth
I own two vacant residential plots in Bangalore and am in the process of selling them. Can I avail exemption from Capital Gains Tax if I invest the gains from both the plots in a house property? I already own a house property in the city. The capital gains are expected to exceed Rs.50 lakhs.
Thank you
Hariharan
1 Answers
Dear Hariharan,
The LAW is not clear on this :)
It is clearly stated that one has to invest in only one property to save LTCG taxes but has not been clearly stated as to if an individual can combine LTCG gains of multiple properties or not..
However, there were few court judgments wherein it has been accepted to invest the gains from multiple properties in a single new property.
Under sec 54 there is a restriction on investing in one property but no restriction on gains from selling multiple properties.
You may kindly consult a CA too on this matter.
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