Querries related to capital gain tax by selling property

Yes it is possible. You will get exemption for the amount of capital gain used to purchase new residential property. If you use whole amount of gain then you will be fully exempt else you will only be liable to pay capital gain tax on the amount of capital gain not utilised for purchasing new property.

Agreed with Ishaan.

Thanks Ishaan and Jithendra.

I am planning to put entire amount recieved from selling my old property into new home loan.

The only confusion I have now is , I am purchasing new property before selling older one. I am taking home loan for new property and I am planning settle to this homeloan in next 6 months by selling my old property. Does Govt allow this way to exempt from capital tax gain.

I am aware the normal rule where you sell your old property first and whatever money you get you invest in new property later to get exempt from tax gain. I am trying to do reverse, purchase first with homeloan and sell later and then try to get exempt from capital gain.

 

 

 

 

 

dear ashish,

according to section 54 of income tax act capital gain arising from a long term capital asset shall be exempted if the capital gain is invested in purchase of another residential house before one year(relevant in your case) or after 2 years.

since you are purchasing the new house within one year before the sale, your capital gain can be exempted.

hope this helped