Set off Long Term Capital Gains

Question

Can we set off capital gain tax arising out of sale of property by buying more than one residential properties?

Answer

In Section 54 of the income tax act there is no specific limitation to the effect that the assessee should own only one house. Set off for Long Term capital Gain is available for more than one house. Please check Direct Tax Ready Reckoner under Article Capital Gains from transfer of land chapter. There are very good examples given there.