Can You Claim Exemption For Two Separate Years For Investment In same House ?

Before I express my opinion, let us see what the exemption provison says u/s 54 F of the I T Act. The conditions for claim of exemption u/s 54F are

• The gain should be long term .
• The asset sold should be other than a residential house .
• The investment should be for buying or constructing a house.
• The investment should be within one year before the sale of asset on which log term gain arisen or
• The investment should be within two years after the sale of asset on which log term gain arisen or
• There should not be more than one residential house at the time of purchase or construction of new house.

If someone fulfills all the aforesaid conditions , he/she will get exemption u/s 54F of the I .T. Act.
Issue of investment in one house of long term gains arisen in two years?

It is clear that the condition of “one year before” can be fulfilled by an assessee for long term gains arising in consecuitive two years. There is nothing expressly written in the I T Act , that such LTCG of two years can not be claimed for same house. The condition is LTCG should be utilised for purchase of residential house.In your specific case , ESOP share is long term capital asset as they were held for more than one year and the gain on sale of those shares were utilised for same residence purchase. If action to invest has been done within time limit , I feel you are certainly eligible for claim of exemption u/s 54F of the I T Act.