There are no restrictions as to the number of times you can avail this tax benefit as long as the long term capital gains on sale of one house are invested in another house
Whether long term capital gains exemption is applicable for the transactions of sale of second home/third home or it is only applicable for sale of first home?
Answer: I understand you are talking about exemption available under Section 54 of the Income Tax Act. This exemption is available in respect of long-term capital gains arising on sale of a residential house held for 24 months or more if such long term capital gains are invested for purchase/construction of another residential house in India within specified time.
There are no restrictions as to the number of times you can avail this tax benefit as long as the long term capital gains on sale of one house are invested in another house. You can claim this exemption even in respect of more than one house sold during the year provided you satisfy the basic conditions.
You can also claim this exemption in respect of more than one residential house by investing the long term capital gains in one house in India. In case capital gains arising on sale of a residential house are invested for purchase or construction of more than one residential house, you will get the benefit only in respect of capital gains invested in one house only. However, one can avail once in a life time opportunity to claim exemption from long term capital gains on sale of one residential house by investing the same in two residential house property provided the amount of such long term capital gains do not exceed two crore rupees. Moreover, there is no restriction as to the number of houses, which you can own on the date of sale of the residential house property to claim exemption under this section.
Source: https://www.livemint.com/money/personal-finance/income-tax-rules-on-sale-of-second-house-explained-11674139737782.html
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