Property sold before 3 years

The reversal will be whatever exemption you had claimed u/s. 54 in Ass Yr. 2015-16, would be added to your income in the year (when the property sold before 3 years)

Say, your capital gains exemption under section  54 was X Rs.

Now if the said property is sold in April 2017, (assuming before 3 years lock-in-period), the LT cap. Gain Tax liability will arise over the X amount in FY 2017-18. i.e 20% of X plus cess.

Do you think section 234 will apply while calculating tax liability for LTCG ?

Not from the first year of investment in house property, but from the date when its sold. (second property in which deduction was claimed)

Thank you Mr. Rambhia

My pleasure