Adjustment of LTCG from sale of property

We have purchased a flat in Mumbai about 20 years back and it has been given for rent for various reasons. About 10 years back we purchased a flat in Hyderabad near our office and we are residing there. As my husband is retired now we want to go to a more peaceful area and so booked a flat. The construction is expected to complete in the second half of 2026. We want to sell the Mumbai flat and expect a good LTCG. When should we sell to save tax on this LTCG ?

Suguna

bsuguna71 @ yahoo.com

Replies (2)
Quick Summary
This discussion explores how to adjust Long Term Capital Gains (LTCG) tax when selling a property. The user is planning to sell a Mumbai flat purchased 20 years ago to fund a new home. They are seeking advice on the best time to sell to minimise tax liability. The response clarifies that properties purchased within two years before or after the sale date are eligible for LTCG exemption.

As per IT act, any residential property purchased before one year of sale and 2 years after the sale will be considered as eligible investment for exemption.

 

Suppose, you are selling mumbai house on 01/04/2025. Any residential property purchased between 01/04/2024 to 31/03/2027 are eligible for exemption.

Thanks for the clarification.

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