Long term capital gain on sale of property ...

Hi,

I have a long term capital gain of 30 lacs after indexation and the total sale consideration is 1.9 cr. (Sale date June 1, 2024)

I have already purchased a under-construction flat worth 2 cr on April 10, 2024 and the possession date is December 31, 2027.

How early can I sell this new flat and also get the tax benefit claimed earlier while purchasing this new flat.

Replies (8)
Quick Summary
This discussion explores claiming tax benefits on a new property purchase to offset long-term capital gains tax from a previous sale. The key issue is the timing of the new property purchase and its possession date relative to the sale of the old property. While strict rules apply regarding purchase and sale timelines for tax benefits, case law may offer avenues for relief in specific circumstances, particularly concerning under-construction properties where possession extends beyond the typical three-year window.

Selling of house property and indexation of the same is possible . But you will get benefit for the same.
In order to claim the deduction, the property should be sold 1 year before or 2 years after the date of sale of old property. In the given case, the time limit is April 10, 2023 to 31st May 2026.

Not before 01.01.2031.... 

The possession of this under construction flat is not within 3 years from the date of purchase. Can I still claim tax benefit from this?

Legally not, but there are case laws supporting assessee in such case.

 

Thanks for your valuable input.

You are welcome...         

Tenure is obviously important

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