LTCG Exemption: Can You Buy Two Homes for Kids After Selling One? Expert Explains

• Exemption under Section 54 allows using Long Term Capital Gains (LTCG) from a house sale to buy another property within a specified period.
• Only LTCG, not the entire sale proceeds, needs to be reinvested to claim exemption under Section 54.
• While generally for one house, Income Tax Tribunals consider two adjacent flats as a single residential unit for Section 54 exemption.
• Property can be bought jointly with children; a will ensures tax-free transfer to them after the parent's demise.
• Section 54 offers a one-time opportunity to buy two houses with LTCG if the gains do not exceed 2 crore rupees.

Why It Matters: LTCG from house sale can buy two adjacent homes for kids, with specific conditions for tax exemption.