When is tax exemption available on Sale of House Property u/s 54?

Tax deduction u/s 54 is available when a taxpayer sells a house property and buys another against it. 

Amount of Exemption allowed u/s 54 will be lower of the amount invested in new residential House Property or the Capital Gain.

The exemption u/s 54 is available when:

• ​A Long Term residential House Property has been sold.
• ​A new residential house is purchased before one year or after two years from the sale of the residential House Property, or
• In case of construction of a new House Property, within three years from the sale of the residential House Property.
• The new residential House Property should not be sold until 3 years from the date of its purchase.