NRI Guide to Selling Property in India

If you sell a residential property (after 3 years from date of purchase) and reinvest the proceeds into another residential property (within 2 years from date of sale), your gains will be exempt to the extent of the cost of new property. Can you invest the proceeds in a foreign property and still avail the benefit of section 54? Vikas Vasal, Executive Director of KPMG India says, "Section 54 does not specify that the property must necessarily in India. So yes, a beneficial view can be taken."