LTCG on House Property 2024

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This query is : Resolved

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This discussion addresses how to utilise Long Term Capital Gains (LTCG) from the sale of a house. The user sold a property for £60 Lakhs that was purchased over 10 years ago for £12 Lakhs. They are also in the process of purchasing two under-construction flats, with final registries and payments pending. Guidance suggests claiming exemption under Section 54 of the Income Tax Act by utilising the gains on one of the new flats, provided possession is received before December 2026, including registration.

Matharan Raju

Matharan Raju (Querist)

21 December 2024 Hi,
I sold a house yesterday for 60Lakhs , bought for 12Lakhs 10+ years back. Also, have made agreements with two builders to buy two flats , one in 2016 and the other in 2020. Both properties are under construction, as in not yet completed and no CC received yet. Final Registries are also due for the new flats and need to make payments to both builders , cumulatively exceeding the difference received.

1) How can the LTCG earned from the sale be utilised in this case ?

Please guide.

Regards

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

21 December 2024 You can claim exemption u/s. 54 IT act, in any one of the flat' provided you receive its possession in near future.

Matharan Raju

Matharan Raju (Querist)

30 December 2024 Respected Sir, Can you kindly elaborate on your response to have clarity and depth on the matter ? Let me know if I need to provide any other facts to get the best guidance.
Regards

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

30 December 2024 You can claim exemption u/s. 54 IT act provided you get possession of any flat on or before Dec. 2026 with registration.

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