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

Capital gains exemption under section 54: sale of a vacant residential house can qualify even if another is owned. A taxpayer who sells a vacant residential house while owning another residential house may claim the capital gains exemption under section 54 for the transfer of house property; section 54F applies only to capital gains on transfer of assets other than house property and thus is not applicable to sale of a house.