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Selling of flat

Tax queries 618 views 6 replies

Gunavant Patil

5 Points Posted on 08 May 2026

Hi,

I am having three flat X, Y & Z.

I have purchased flat Y with aggreement value rs. 25 Lakh in 2018. But in 2025 I have sell this flat with aggreement value rs. 30 Lakh. Accordingly buyer bank has paid the amount rs. 21.67 lakh to my loan bank account. And remaining amount I have invested to purchase of flat Z in sep 2025.

Meanwhile. I have sell my flat X with aggreement value rs. 29 lakhs in march 2026. Which was purchased 2009 with aggreement value rs. 9 lakhs.

can I invest the total amount of flat X in repayment of home loan which is taken for flat Z for exemption of capital gain tax.

Replies (6)

Quick Summary

Taxpayers selling residential flats may claim Section 54 exemption if capital gains are invested in a new residential property within prescribed timelines. Repayment of a home loan for the new flat may qualify, and ITR-2 or ITR-3 should be used to report the transaction and exemption claim.

Aashok FC Advisory

Finance Compliance Consultant

918 Points Posted on 08 May 2026

Yes, you can claim the exemption. Because Flat Z was purchased within one year prior to the sale of Flat X, using the sale proceeds to repay the home loan taken for Flat Z is considered a valid investment under Section 54 of the Income Tax Act.

Gunavant Patil

5 Points Posted on 08 May 2026

Sir

Against which ITR ?

Aashok FC Advisory

Finance Compliance Consultant

918 Points Posted on 08 May 2026

You should file ITR-2 to report the sale and claim the Section 54 exemption. If you have professional or business income, use ITR-3. In either case, the details of the sale and the loan repayment for the new flat will be recorded in Schedule CG.