INCOME TAX10 Sept 2026
Bought multiple homes after selling one property? This ₹23.76 crore tax case has an important lesson for homeowners
A Mumbai tax tribunal allowed a Section 54 exemption on investments in more than one house for Assessment Year 2013-14. Back then the law said 'a residential house'. It also allowed ₹20.44 lakh spent on civil and electrical work. If you sold property in those years and claimed relief, this helps. Check which year your sale falls in.
Key Statutory Highlights
- The Mumbai bench of the Income Tax Appellate Tribunal allowed the Section 54 exemption on investments made in more than one residential property.
- The ruling covers Assessment Year 2013-14, when Section 54 referred to investment in 'a residential house'.
- The law was amended with effect from 1 April 2015, applicable from AY 2015-16, to read 'one residential house in India'.
Actionable Advice for Taxpayers / Founders:If your property sale falls in an assessment year up to AY 2014-15 and you invested in more than one house, keep your purchase documents and invoices safely and speak to your chartered accountant about whether a Section 54 claim can be supported.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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