Long Term Capital Gain upon sale of property used for residence  is exempted u/s 54 if invested in one residential house within a period of 1 year before or two year after the transfer took place. My question is if an assesse incur LTCG upon sale of residential property in month of April, 2014 and invest the capital gain amount in residential property in the month of June. He will not be liable to pay any LTCG Tax. Again he sell another residential unit in the month of Dec, 14. Now my question is whether he can invest the LTCG on sale of second residential unit in buying any other residential house.

Dear N K Bansal,

Yes, exemption shall be available in the case of second house also.

Unlike section 54F, there is no condition that assessee can not own more than one house, therefore exemption under section 54 shall be available to other house also, provided other conditions of the section gets satisfied.

If you have any question, Pl post the same.

Kind Regards
TaxReply.com 

Kindly refer to decision in CIT vs. Ananda Bassappa (2009) 331 ITR 211 (Kar.) wherein the claim for reinvestment was allowed in two flats which were side by side. The word used in law in a house property and not in one house property. The General Clauses Act says singular includes plural. So a is proposition here and do not limit investment in more than one house property. There are case laws on this issue also and courts have given opinion in both ways.