Tax impact

As per section 54, transfer of LT Residencial house and purchase of one residential house or construct one residence house.
Time limit - Purchase (before 1 year or 2yrs of transfer) or construct within 3 yrs of transfer.
Exemption = purchase of new asset or amount deposited into Capital gain deposit a/c.

Provided that, if capital gain amount does not exceeds ₹ 2 crore, then the assessee purchase 2 Residencial house instead of 1 residential house.

Exemption disallowed- if the new asset is sold within 3 yrs of original asset transfer, then the cost of new asset will be reduced by amount exempted earlier.

No you cannot sale the house now as it will lead to short term capital gains and no benefit of section 54 will be available to you for purchase of new house. You should sell the house after 3 years from 2019

What if i sale the House on same price (purchase price). Still STCG will affect?

If no gain occurs then stcg shall not arise

Then i can sale it on purchase price. and buy new one now?

Originally posted by : nilesh borse
	What if i sale the House on same price (purchase price). Still STCG will affect?

In case of house, if you sell the house after 2 years (earlier it was 3 years) i.e. by Dec 2021, gain would be long term capital gain (not short-term). If you buy another house, you may claim exemption u/s 54.

But if you sell within 2 years, then STCG tax would be payable on gains. If you sell now at purchase price, no tax on capital gain would arise.

No restriction if you would like to buy another house but no exemption in case of sale of short term capital assets. Since there is no gain, this doesn't matter I think.

 

Thank you so much