{"id":756,"date":"2025-03-27T15:55:34","date_gmt":"2025-03-27T15:55:34","guid":{"rendered":"https:\/\/www.saldanha.in\/blog\/?p=756"},"modified":"2025-04-03T15:56:34","modified_gmt":"2025-04-03T15:56:34","slug":"capital-gains-can-be-invested-multiple-times-to-buy-a-new-residential-house-property","status":"publish","type":"post","link":"https:\/\/www.saldanha.in\/blog\/capital-gains-can-be-invested-multiple-times-to-buy-a-new-residential-house-property\/","title":{"rendered":"Capital Gains Can Be Invested Multiple Times To Buy A New Residential House Property"},"content":{"rendered":"\n<p>Source: Clear Tax ( <a href=\"https:\/\/bit.ly\/426qy9j\">https:\/\/bit.ly\/426qy9j<\/a> )<\/p>\n\n\n\n<p>Income Tax allows exemption on the long term capital gain if you invest the gains\/consideration in a new residential property subject to certain conditions. Recently, the Income Tax Appellate Tribunal (ITAT) Delhi has allowed multiple-year exemption u\/s 54F for an under-construction house. It held that taxpayer can invest capital gains for the second or third time also towards the same new house property.<\/p>\n\n\n\n<p>Let&#8217;s say Mr. X has sold his land to Mr. Sharma on 14-08-2024 for Rs.5 crores. He purchased the land in June 2020 for Rs.50 lakhs. He reinvested Rs.3 crores for purchase of a new residential property on August, 2025. He does not own any residential property on the date of transfer.<\/p>\n\n\n\n<p>In this case, Long Term Capital Gains provisions are attracted as he held the property for more than 2 years. Therefore, indexation benefit is allowed in this case. He can claim exemption u\/s 54F as in this case,<\/p>\n\n\n\n<ul>\n<li>He sold a Long Term Capital Asset other than house property, and used the sales proceeds in a house property.<\/li>\n\n\n\n<li>He does not own any residential property on the date of transfer.<\/li>\n\n\n\n<li>Using the sales proceeds, he purchased of another residential property. Also, he made the purchase within 2 years of transfer.<\/li>\n<\/ul>\n\n\n\n<p>If the exemption ceiling limit Rs.10 crores, the entire amount can be claimed as an exemption in this case.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Income Tax allows exemption on the long term capital gain if you invest the gains\/consideration in a new residential property subject to certain conditions. Recently, the Income Tax Appellate Tribunal (ITAT) Delhi has allowed multiple-year exemption u\/s 54F for an under-construction house. It held that taxpayer can invest capital gains for the second or third time also towards the same new house property.<\/p>\n","protected":false},"author":1,"featured_media":747,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":""},"categories":[4,3,34],"tags":[],"_links":{"self":[{"href":"https:\/\/www.saldanha.in\/blog\/wp-json\/wp\/v2\/posts\/756"}],"collection":[{"href":"https:\/\/www.saldanha.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.saldanha.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.saldanha.in\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.saldanha.in\/blog\/wp-json\/wp\/v2\/comments?post=756"}],"version-history":[{"count":1,"href":"https:\/\/www.saldanha.in\/blog\/wp-json\/wp\/v2\/posts\/756\/revisions"}],"predecessor-version":[{"id":757,"href":"https:\/\/www.saldanha.in\/blog\/wp-json\/wp\/v2\/posts\/756\/revisions\/757"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.saldanha.in\/blog\/wp-json\/wp\/v2\/media\/747"}],"wp:attachment":[{"href":"https:\/\/www.saldanha.in\/blog\/wp-json\/wp\/v2\/media?parent=756"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.saldanha.in\/blog\/wp-json\/wp\/v2\/categories?post=756"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.saldanha.in\/blog\/wp-json\/wp\/v2\/tags?post=756"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}