Capital Gain

This discussion clarifies capital gains tax implications when selling a property. It explains that while the initial long-term capital gain (LTCG) from selling an old house might be exempt under Section 54 if reinvested in a new one, selling the new property before a certain period will incur short-term capital gains (STCG) tax. The STCG is taxed at your regular income tax slab rate, including cess. The thread also confirms that you can sell the property, but reinvesting the proceeds from this sale into another new house won't exempt the STCG.