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Underneath Segment fifty four the IncomeTax Act, a person or HUF advertising a residential assets can avail tax exemptions from Money Gains Should the money gains are invested in purchase or construction of residential assets.
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Nonetheless, the exemption is issue to the capital achieve not exceeding Rs 2 crore. Also, the exemption is obtainable only once during the life time of the seller.
Case 2: Price of The brand new house purchased is a lot more than the cash gains computed within the sale of the original residence
The above disorders are cumulative. That's why, although a single issue is just not fulfilled, then the seller cannot avail the good thing about the exemption under Section 54.