LTCG from sale of house can be invested in two houses

Interim Finance Minister PiyushGoyal in his Budget 2019 speech has proposed to increase the benefit of long-term capital gains (LTCG) arising from sale of house to two residential houses instead of one currently. As per the current income tax laws, an individual can save tax on LTCG arising from sale of house by investing the capital gains in one new house property. However, once the budget proposal is passed by the Parliament, this would mean that a taxpayer can save tax by investing the gains in two residential house properties. This benefit comes with a catch. An individual can avail this benefit only if capital gains arising from sale of residential house property does not exceed Rs 2 crore and can be availed once in a life time