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)

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)

18 December 2025 Yes, eligible.

Proloy Samaradivakera

Proloy Samaradivakera (Querist)

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)

20 December 2025 Yes.

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