New Delhi, April 13 -- Please note that to avail the tax exemption under Section 54 for long-term capital gains from the sale of a residential house, individuals or an HUF are required to invest only the long-term capital gains and not the sale consideration. Since the benefit of indexation is no longer available for claiming exemption, you will have to invest the actual difference between the sale price and its cost price.

Though the law requires investment to be made in one residential house property in India but there is a one-time exception where you can invest the capital gains arising from the sale of one residential house in two separate residential houses provided the amount of long-term capital gains does not exceed Rs. 2 crores...