Regarding selling a property

Dear members,

Can you help me understand..

I bought one residential property in march 2019  by selling an old property and availed benefits under section 54 . Now again due to some personal reasons I want to sell this house and want to buy another one. How long I need to retain this property to again get the benefit under section 54.
Please clarify.

Regards

Replies (2)
Quick Summary
This discussion clarifies the rules for claiming capital gains tax benefits under Section 54 when selling a residential property. To re-avail the benefit, you generally need to purchase a new property within one year before or two years after the sale date, or construct one within three years. Selling the new property before these time limits expire will result in capital gains tax liability on both the old and new transactions.

The new residential house property should be purchased either one year before the date of transfer or two years after the date of sale or transfer. In case of construction of new house the individual is given an extended time period to construct house i.e within three years of the date of transfer or sale.

Yes, if you sale the new house property before the expiry of 3 years then capital gain tax liability will arise on new transaction and old exempted amount will also chargeable to tax liability.

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