As per Section 54, If the new house is sold within 3 years from the date of purchase or construction, then the exemption claimed earlier under section 54 shall be indirectly taxable in the year of sale of the new house property. That is, the purchase value of the property will be considered to be NIL (if the capital gains of previously sold HP < Investment in such HP)
If the newly purchased house property is sold after 3 years, will the cost of HP be considered the amount paid for purchasing such property? Or will it still be considered NIL?
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