Capital gain tax on property sell

Yes, you can claim exemption u/s. 54 IT act, 1961.

Thanks is there any time stipulation , please specify as I bought the flat.earlier my sell.

Once again many thanks for the information.

T k Ghosh 

As per the section 54, you can purchase new flat within one year from the sell of original flat.

Sorry sir in my case I have already purchase the new flat before selling of old flat. In my case how Section 54 will help me please giide me.

Thanks for your time.

T k Ghosh 

Yes, exemption u/s. 54 IT acrt is applicable in your case; as the time limit is specified as one year before to two years after the sell of original flat.

Is that mean that I have to sell my old flat (22 yrs old) within 1 year of purchase of new flat. I purchased new flat on November 2025 so I have to sell the old flat within November 2026 to get the benefit. If I failed then what will be  the capital gain tax rate can anyone told me. I am a retired person and my total yearly earnings is below Rs 12.00 lakh. 

Many thanks and waiting for your valuable remarks.

Thanks

T K Ghosh

Yes, purchase HP within one year, or LT CG tax liable at 12.5% without indexation or 20% with indexation.

Thanks for your quick response.

You are welcome.         

Section 54 allows you to purchase the new house up to 1 year before the date of sale of the old property, so a November 2025 purchase qualifies for a sale of the old flat any time up to November 2026. The relief is on the long-term capital gain, not the full sale price, so the new flat cost needs to be at least equal to your LTCG computed using the indexed cost of the old flat. For a flat purchased 22 years ago, the indexed cost significantly reduces the taxable gain compared to the original cost. For the ITR-2 filing and to ensure the Section 54 claim is properly documented with the correct Schedule CG, [Tax Garden's capital gains filing service](https://taxgarden.in/pricing) handles the full computation and annexure.

The 22-year holding period makes the old flat a long-term capital asset. Tax is on the capital gain, not the entire sale amount: broadly, sale consideration less eligible transfer expenses and the flat’s cost of acquisition/improvement. For transfers on or after 23 July 2024, the general LTCG rate for land/building is 12.5% without indexation; for a resident individual/HUF selling property acquired before that date, a transitional comparison may cap tax at the old 20%-with-indexation amount. Your November 2025 purchase does not, by itself, exempt the gain on the old flat. Section 54 relief may be available if you invest the gain in a qualifying residential house in India within the prescribed timelines; an already completed purchase can count if it falls within the one-year-before-sale window. The exact result depends on your sale date, purchase and improvement costs, sale value, and whether the new flat qualifies.

For this transaction, keep the purchase deed, improvement bills and sale-related expense records together to calculate the gain and assess Section 54 relief. Manual capital-gains work across deeds, dates and cost records is difficult; automation reduces repetitive checking while professional judgment remains in control. At Jir AI we provide 2,000+ AI agents and 650+ integrations to streamline your practice’s day-to-day workload. WhatsApp us to explore how this could fit your workflow: https://wa.me/message/3HVOZ7HIY4ESC1