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Long term Capital Gains on Sold property.

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Syam Motamarri

23 Points Posted on 04 July 2023

If I sold a plot/Site(10Yrs Old) in Dec22 and paid advance to buy new Flat in July 2023, I want to sell one 6 yrs old apartment to buy the same Flat after July 2023, Total sold amount (Site & Apartment) less that New flat cost.

Shall I get capital gain excepemtion.

Replies (3)

Quick Summary

This discussion explores capital gains tax exemptions for property sales. The user sold a plot and plans to sell an apartment to fund a new flat purchase. They are seeking clarification on whether the total proceeds from these sales, exceeding the cost of the new flat, qualify for capital gains tax exemption. The specific figures provided involve a plot sale for £80L and an apartment sale, with a new flat costing £1.3Cr and an advance of £60L already paid.

sabyasachi mukherjee

Profession

19978 Points Posted on 04 July 2023

Pls post values easier to comprehend.

Syam Motamarri

23 Points Posted on 04 July 2023

cost of Plot sold in Dec22 : 40L, To be sold cost expcetation: 80 L

Advance given to New flat: 60L

New Flat cost : : 1.3Cr

Aashok Kumar Sharma

Finance/Compliance Consultant

75663 Points Posted on 08 November 2026

Plot sold December 2022, flat advance July 2023:

• LTCG on the plot (10 years old) qualifies for Sec 54F if the net consideration is invested in a residential house: purchase within 1 year before or 2 years after the sale (by December 2024), or construction within 3 years (by December 2025). Booking a flat from a builder counts as construction (Circular 471/1986).

• If you now want to sell the new flat: under Sec 54F(3), if the new house is transferred within 3 years of its purchase or construction, the exemption claimed earlier is withdrawn (taxed as LTCG in the year of the new house's transfer).

• If you didn't complete the purchase (only paid an advance) and want to exit the booking, the exemption isn't secured. Deposit the unutilised amount in the CGAS (if not done, the exemption is lost).