Capital gain tax

Yes you can sell and you just need to pay capital gain tax on same but you will save that by investing in new house.

There is a difference between section 54 and 54F in selling of the new asset.

In short I would like to say that if you are planning to sell new house you can and if the amount is equal to or more than this house you won't have to pay any tax.

If you need further assistance we can have a phone consultation.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Hi,

Hope you are doing well !!

Yes, you can go ahead with the proposed plan.

Also, you can claim an exemption from LTCG, under section 54 of the income-tax Act if the LTCG is reinvested in a new residential property located in India within the specified time frames. Where the new property is purchased, the gain is required to be reinvested either within 1 year prior to sale date or 2 years after the sale date. Where the new property is constructed, the time period prescribed for the reinvestment is within 3 years from the date of sale of the original asset.

Alternatively and/or additionally, you can invest the capital gains of up to Rs 50 lakhs in bonds of NHAI or REC, within six months of its accrual and get the exemption u/s 54EC.

Such bonds shall be redeemable after 5 years. Only interest received on such bonds shall be taxable. There would be no taxes on redemption after 5 years.

It is advisable to take a phone consultation for detailed discussion.

I think you can but for more details I need more details.

If you have any further queries we can have a phone consultation and you can ask whatever queries you have.

Dear sir

If the new property was sold within three years from the date of acquisition, hence its cost of acquisition was considered as nil. Thus, the complete sale amount will be taxable as capital gains.

U can invest the same in sec 54EC bonds. 

• 54 EC bonds are offered to investors who earned long-term capital gains from land or building or both and would like tax exemption on these gains
• The eligible bonds under section 54EC include bonds on offer by REC and NHAI

But note that usually this type of bond has 5 years lockdown period.

if u further need assistance than u can contact me through phone consultant

Please rate 5 & provide valuable feedback to improve my answer in future

Hi

If your intent is to reinvest in another house property, it would be good option for you.

You can sell this property. The capital gain exemption claimed earlier would be reversed by way of reduction of cost of acquisition from this property.

Further, this being a long term capital asset, you will be eligible to claim capital gain exemption by reinvesting in another house property.

For example, you had capital gains of 10 lacs and purchased property A for 30 lacs to claim capital gain exemption under section 54.

Now, when you're selling property A after 2 years for 45 lacs, capital gains would be 25 lacs ([deleted]). If you invest 25 lacs in another residential house property, there would be no taxes to be paid.

Hello,

If you plan to invest the sale proceeds in another house property, then on selling the current property, the exemption would be available from the re-taxability of earlier exempted capital gain.

I hope this answer satisfies your requirements. 

Regards,

CA Hunny Badlani

For further understanding or capital gain calculation, you can contact us directly at or take a phone consultation.

Regards,

CA Hunny Badlani

- Residential property sold within a period of three years from the date of its acquisition, the capital gain will be short term capital gain. Section 54, 54EC and 54F is applicable on long term gain.

You cannot sell this house before 2021. If it is sold before 2021 the capital gain arising from this sale and capital gain exemption that was availed on first sale will become taxable.