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Sell Real Estate & Buy New from other source and still gain tax exemption

Tax queries 278 views 3 replies

I want to sell a property A and buy another property B. Let us say I sell  property A to get X lakhs, but during this selling period I already paid advance Y lakhs to buy another property B from my other savings. Later on I paid the remaining amount for B from the X lakhs I got from the property A.

Can I still claim the capital gain exemption for reinvesting in a new real estate though I paid partial amount from my other sources or I need to show to IT that full amount was paid from the X lakhs that I got from property A.

Replies (3)

You can get full capital gain exemption u/s. 54 of IT act, provided your purchase of second property B was not more than 12 months before sell of first property A; even if source of funds in purchse were not connected to the sell transaction.

Thanks a lot for your advise and time Sir !! Many Thanks !!

You are welcome..               


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