I currently own two properties, one apartment and an ancestral house in two different cities.

I have 1/3rd share in the ancestral house along with my siblings.

We are planning to sell the ancestral house shortly. Can I utilise my house selling LTCG amount u/s 54 for purchasing another apartment either as a single owner or jointly with my son?

If yes, do I have to purchase in the same city as the ancestral house?

Eagerly awaiting your expert views to the above question.

Many thanks in advance.

Ans: Yes. LTCG of father can be adjusted against purchase of another house/apartment, even when it is registered in joint name with his son or daughter in law.
Most welcome for any further clarifications. Thanks.

Ans: Exemption for 2 properties is available up to Rs 2 crore of capital gain once in a lifetime

Ans: 01. To get Exemption u/s 54 from LTCG, your mother can invest in a Residential House, with in time limits.
02. Maximum 2 houses can be purchased/constructed, if LTCG is up to Rs.200.00 (L). This opportunity is available only once in a life time.
03. She may purchase the houses in her name or in the name of her spouse or her children (My opinion is based on the decisions of the ITAT).
04. Please also note that only your mother can purchase the residential property & get exemption. The property may be registered in the name of her spouse/children, BUT payment should be made directly by her.
However, if she transfer the amount to all three of you & you purchase the property, exemption will not be available.
You can review your tax planning in light of above details.
Most welcome for any further clarifications. Thanks.