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Capital gain on sale of house property

Komal (student ca final) (724 Points)

08 February 2019

I have sold a house property on 1 jan 2018. Within how much time do i have to purchase another house property in order to save myself from paying capital gain tax?

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4 Replies

CA.Pankaj Rawat (Chartered Accountant) (1381 Points)
Replied 08 February 2019

The seller should purchase a residential house either 1 year before the date of sale/transfer or 2 years after the date of sale/transfer. In case the seller is constructing a house, the seller has an extended time, ie. the seller will have to construct the residential house within 3 years from the date of sale/transfer. In case of compulsory acquisition, the period of acquisition or construction will be determined from the date of receipt of compensation (whether original or additional compensation)

Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 08 February 2019

if you are unable to invest the entire capital gains on or before the due date of filing return then you need to deposit the unutilized capital gains in Capital Gains Account Scheme of notified bank and claim exemption for that year

Komal (student ca final) (724 Points)
Replied 08 February 2019

The period of 2 years will be counted from date of sale??

Amit Kumar Bansal (Job/Blogger) (688 Points)
Replied 22 October 2019

There must be some important points If the individual required to save capital gain tax.

Should be Individual or HUF.
This section is applicable only on Long term capital.
The taxpayer should have to acquire another residential house or should construct a residential house within a period of three years from the date of transfer of the old house.
This exemption is excepted only for one House Property.

For complete information on Capital Gain Tax on Sale of House Property click here