Query on income tax on long term capital gain
This query is : Open
Querist : Anonymous
Querist :
Anonymous
(Querist)
22 July 2016
Dear Experts,
I am planning to buy a bigger second residential property from the consideration and sale proceeds of my existing smaller house.
But the condition is that I will buy the bigger house before selling my existing house by taking house loan and then latter will repay the house loan from the consideration received by selling my existing house. I will sell the first house within six months of buying second house.
Is it allowed to claim long term capital gain tax exemption by reinvesting consideration received from first house and payment of house loan of second?
I am planning to buy a bigger second residential property from the consideration and sale proceeds of my existing smaller house.
But the condition is that I will buy the bigger house before selling my existing house by taking house loan and then latter will repay the house loan from the consideration received by selling my existing house. I will sell the first house within six months of buying second house.
Is it allowed to claim long term capital gain tax exemption by reinvesting consideration received from first house and payment of house loan of second?
CA. Sunil Gokhale
(Expert)
23 July 2016
Yes, you can do that.
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