Tax liability on sale of flat

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I had purchased a 2 BHK flat in 2009 and recently booked a new 3 BHK Flat recently which is under construction.The cost of the 3 BHK flat is much high so i will have to sell ealier purchased 2 BHK flat during the time of possesion of 3 BHK. if i sell this 2 BHK flat and invest in 3 BHK before possession. will i get the Tax benefit? i.e. No long term capital gain tax from 2 BHK

or It is mandatory to sell the first flat first then book the new flat to get tax benefit.

kindly put some light on that

Replies (1)

Yes you will get the tax benefit under section 54. You said that you recently purchase the new flat. 

The condition is that the new house should be purchase 1 year before or 2 year after sale of the property. For more information click here

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