Hi Tax Gurus, Our case is as follows: I am salary employee. House 1 We sold our residential inherited house (we stayed in it for 36 years) in DEC-2017 for 1,48,50,000 (1 crore 48 lakhs & 50 thousand). We are 3 people (My Mother,My married Sister & Me) and each of us got 1,48,50,000 divide by 3 = 49 lakhs & 50 thousand. We started living in it from MAY-1981. Location: Pune We paid brokerage as 99 thousand each. My father passed away in MAY-2012. Note: We don’t know how much money my father spent for building the house i.e. we don’t know the Purchase price of it. Valuation of the house is 2 crores. Any idea how to calculate Purchase value? House 2 We sold one more house (which was vacant) in MAY-2017 for 63 lakhs. We purchased it for 23 lakhs. We never lived in it. It was on my name & my wife’s name. Purchase date: 21-JUL-2011 (more than 3 years). Location: Ahmedabad. Each one of us got 31 lakhs & 50 thousand. We paid brokerage as 63 thousand each of us paid 31 thousand 500 to broker. Now I bought a house i DEC-2017 (flat in which we are staying now) in which I invested 49 lakhs & 50 thousand (House1 share) + 31 lakhs & 50 thousand (House2 share). My wife contributed her share as 31 lakhs & 50 thousand. My mother contributed her share as 49 lakhs & 50 thousand. In short, whatever money we got + we invested in new house 100%. As per my analysis & understanding, I have to file ITR-2 since it is more than one house. I can claim exemption under 54 section and not any other 54 section. My wife and mother will file ITR-1 since for them, it is only one house sold on their names. Please clarify my understanding. Regards, Sandeep