What is the position in case of a sale of a house owned by a firm but which was occupied by partners for residential purposes?

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• Is the exemption valid in case of residential house purchased outside India?

  No. The section specifically mentions that the new asset being a residential house must be acquired in India.

• How can I claim relief in case of selling a residential property to buy another residential property?

  Under section 54, any long-term capital gain arising to an individual or an HUF on sale of a residential property shall be exempt if the capital gains are invested in another residential property. The property sold can be self-occupied or rented.

• What is the time limit for purchase of a new residential house from the time of sale of original house?

  In order to be eligible for the benefit under this section the NEW house must be purchased within a period of ONE year BEFORE or TWO years AFTER the sale of original asset.

• What is the time limit for construction of a new residential house from the time of sale of original house?

  In order to be eligible for the benefit under this section the NEW house must be constructed within a period of THREE years AFTER the sale of original asset.

• I have sold my residential house and invested the entire proceeds in purchase of a new house from a builder for which an agreement to sale is registered. However, the builder has not given possession of the flat. Am I eligible for benefits?

  Yes. The key condition is utilization of sale proceeds for investment in a new residential house. If you could demonstrate that the delayed possession is beyond your control and you have paid substantial amounts to the builder, you are eligible for ...