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LTCG HOUSE TAX

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camahesh

57 Points Posted on 21 February 2020

KINDLY//// PLEASE GIVE 2 MINUTES TO UNDERSTAND THEN ANSWER.................................................I had sold house No 1 .... in October 2018 in which i had Capital Gain/ LTCG of Rs 75 Lakh in September 2018 i purchases new house (ie No 2) ......for Rs 90 Lakh and got exemption U/S 54 OF IT Act of Rs 75 Lakh tax.................................But now i am getting offer by some one to sell same house No 2 for Rs 3 crores which i could sell in November 2020 or even in november 2021........................................so if i sold this house , so what would be my tax liabity ( of exemption of Rs 75 lakhs, its possible or is it compulsoryily i have to hold for 3 years) as i am selling house No 2 . in november 2020 or november 2021.........................................and what if i purchase new house no 3 after selling the said house no 2

Replies (2)

Quick Summary

This discussion explores the tax liability when selling a property (House No. 2) that was purchased using a Capital Gains Tax exemption under Section 54 of the IT Act. The original exemption of Rs. 75 lakh was claimed on the sale of House No. 1. The user is considering selling House No. 2 within three years of its purchase and wants to know if the Rs. 75 lakh exemption will be revoked and become taxable, and what the implications are if a new property (House No. 3) is purchased afterwards.

Raghav Jhunjhunwala

51 Points Posted on 21 February 2020

Yes, if the house no. 2 is slod within 3 years from its purchase, you would have to pay capital gains tax on Rs. 75L arising out of sale of house no. 1 U/s 54F(3)