Sale of residential house - benefit u/s 54 or 54F where one is the owner of second house also

[Kishor Deshpande]

A person has two residential houses. In one house he is residing while the other house is vacate and there on any kind of income of rent from the same. Now he wants to sell the house which is vacate. Can he avail the benefit of section 54 or section 54F against the capital gain which will arise after selling the house.

[Surender Gupta]

Yes, he can claim the exemption under section 54.

[VINOD KUMAR SHARMA]

You can claim the benefit under sec 54 which deals with capital gain arising on transfer of house property . Sec 54 F is applicable in case of capital gain arising on transfer on capital assets other than house property.

AI Summary

Homeowner Eligible for Tax Exemption on Vacant House Sale Under Section 54 for Capital Gains A person owns two residential houses, residing in one while the other is vacant and not generating rental income. He plans to sell the vacant house and seeks to understand if he can claim tax exemptions under section 54 or 54F for the capital gains from the sale. Two replies confirm that he can claim an exemption under section 54, which pertains to capital gains from the sale of house property. Section 54F applies to capital gains from the transfer of capital assets other than house property.