Limit Section 54 benefit to curb money laundering

Section 54 tax exemption should not be available if the taxpayer already owns two or more properties on the date of sale of property

Recently, there was a news report about a corrupt bureaucrat who was caught with currency notes running into crores and papers showing ownership of 17 flats. There is a close linkage between the footage showing a room full of currency notes and visuals of plush flats the corrupt bureaucrat owns.  

A piece by economist Vivek Kaul highlighted how changes in tax laws have had a mild dampening impact on the activities of such real estate “investors”. In my view, the impact has been mild because of the continuation of Section 54 of the Income-Tax (I-T) Act in its current form. It