ltcg on propert

Hello, I am planning to buy a residential property for rs 80 lacs for which i would take a loan about 65lacs. In case, Within a period of next few months i get a receipt of say rs80 lac from a sale on a non residential property. can i adjust the ltcg receipt of this non residential property to the previously acquired res. property(within a span of 6months)(or to pay the loan).

asked Sep 02 '11 at 00:24 by dsaw 1123


As per section 54F, in order to save income tax fully arising on long term gains from asset other than residential house property, you can invest whole sale consideration amount (80 lacs here) into a residential house property. This can be done in time period of one year before sale and two years after sale.

If you buy a residential house property within one year before sale of non-residential property, tax benefit can be taken.

But there are some following conditions which have to be followed in order to take benefit:

  1. You should not be owning more than one residential house(flat/house/apartment) at the time of buying new property.
  2. If total residential houses owned by you is two (including new property), you should not buy another one within next three years of purchase. Or in next three years, total owned residential houses should not be more than two.
  3. New property should not be sold before next three years.

answered Sep 02 '11 at 17:56 by pankaj 5.2k320

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Asked: Sep 02 '11 at 00:24

Seen: 1,374 times

Last updated: Sep 02 '11 at 17:56