Sell multiple houses and invest in one to avail yourself of tax benefits

Do stick to the timelines mandated by the tax laws

The Income Tax Appellate Tribunal, Delhi, recently ruled that if a house owner sells multiple properties and invests the proceeds in a new house, he is eligible to get a deduction of capital gains tax benefit.

“It’s not unusual to see people sell small dwelling units and buy a bigger one. The ruling, therefore, benefits taxpayers and can be used as a reference in other states,” says Naveen Wadhwa, general manager, Taxmann.com.

According to Wadhwa, the government had brought an amendment two years back clarifying that an individual cannot invest in multiple properties by selling one house unit to save