FAQ Capital Gain

Q-Can A Person Get Exemption u/s 54F If He Purchases More Than One House?
Is there a limit to the number of residential properties that a person can invest in for claiming exemption u/s 54F? For eg: If a person is selling jewellery(long term), and buying two residential houses. At the time of transfer, the person already owned one residential house. Can he claim exemption u/s 54F for both the houses?
No, the language used in Section 54F makes it clear that a person cannot purchase more than one residential house within one year from the date of sale of the asset.
Further there is proviso to section 54F which states the condition in which section 54F is NOT applicable.
The said proviso is given under
Provided that nothing contained in this sub-section shall apply where
(a) the assessee,
(i) owns more than one residential house, other than the new asset, on the date of transfer of the original asset; or
(ii) purchases any residential house, other than the new asset, within a period of one year after the date of transfer of the original asset; or
(iii) constructs any residential house, other than the new asset, within a period of three years after the date of transfer of the original asset; and
(b) the income from such residential house, other than the one residential house owned on the date of transfer of the original asset, is chargeable under the head Income from house property.

Therefore, he is just not eligible for the exemption u/s 54F because as per the section 54F a person is not eligible for exemption u/s 54F if he purchase more than a residential house other than the house already owned by him.
Since you will be selling Land, you can claim exemption u/s 54F under which if you have more than one house on the date of purchase of new home, then only you are not eligible for exemption u/s 54F .What it means that you are eligible for exemption u/s 54F if you have not more than one house.
In my opinion, the limit is ownership of two residential houses maximum.(personal opinion subject to jurisdiction)

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