LTCG on property sale with more than 1 property

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This discussion clarifies if Long Term Capital Gains (LTCG) tax from selling a property can be offset by the purchase of a new property. The user plans to buy a new flat (C) and then sell an existing flat (B) within six months. The answer confirms that this is permissible, allowing for LTCG tax minimization. However, for a brief period where three properties are owned, notional rent may be applicable.

Proloy Samaradivakera

Proloy Samaradivakera (Querist)
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18 December 2025 Currently I have two properties (flats) - one inherited from my mother and another flat (B) which I bought in 2018. I am planning to buy another flat (C) currently and planning to sell the one I bought (B) in 2018. However the sequence will be - I buy the new flat (C) now and then sell the bought (B) 2018 flat within the next 6 months of buying the new flat (C).

Can I offset the LTCG of selling the flat (B) with the buy value of the new flat (C) , so that my LTCG tax is minimized or nil depending upon the gains and buy price of new 2nd hand flat.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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18 December 2025 Yes, eligible.

Proloy Samaradivakera

Proloy Samaradivakera (Querist)
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19 December 2025 Since for a duration of say 1 to 6 months , I will have 3 properties before I sell the falt B, do I have to pay notional rent for 1 of the flats?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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20 December 2025 Yes.

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