Tax liability on sale of 1st property after purchase of 2nd

Hello,
I plan to sell my Flat and invest the returns, adding some additional funds in another property to enjoy the ZERO tax benefits on LTCG.


However I found a new property which I want to buy and my 1st Flat is still for SALE.

If I use my other sources of Income added with Bank Loan and buy the 2nd property now... when I sell my 1st Flat 3 months later (perhaps during the same financial year), can the returns from this SALE can be considered as invested in my 2nd property which I bought 2 or 3 months before and enjoy ZERO tax or am I liable for LTCG on the SALE amount and pay tax or invest in Govt Bonds?

I highly appreciate any guidance from experts in this forum.

Thanks,
Gopi

Replies (3)

" If I use my other sources of Income added with Bank Loan and buy the 2nd property now... when I sell my 1st Flat 3 months later (perhaps during the same financial year), can the returns from this SALE can be considered as invested in my 2nd property which I bought 2 or 3 months before ......?"

Yes, as per section 54 deduction is allowed for a residential property purchased 1 year before sell of old residential house.

Thanks a lot for your quick and prompt response. It really helps.

My Pleasure.......

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
29 August 2026
Chartered Accountant

Velionit Consulting PVT LTd

Mumbai

CA

View Details
Company
ARTICLESHIP 29 August 2026
Article Assistant

RRPM & ASSOCIATES LLP

Chennai

CA Inter

View Details
Company
ARTICLESHIP 25 August 2026
CA Article's

Saini Pati Shah & Co LLP

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 24 August 2026
Article Assistant

M/s.S.G.Salecha & Co.

Mumbai

CA Inter

View Details
Company
11 August 2026
Chartered Accountant

Aviv Global Pvt Ltd

Ahmedabad

CA

View Details
Company
ARTICLESHIP 26 August 2026
Article Assistant

ANIVESH CONSULTANTS LLP

Gurgaon

CA Inter

View Details
Company
ARTICLESHIP 26 August 2026
CA Article Assistant/CA Drop Out/Accounts Executive

PARV & Co.

New Delhi

CA Inter

View Details
Company
18 August 2026
Audit Assistant - Remote / Work From Home

CA ANOOP P K & ASSOCIATES

Kozhikode

CA Inter

View Details