Capital Gains on sale of flat

Dear Pankaj,

I had bought a flat in 2006 for Rs. 40 lakhs and sold the same in Aug 2010 for 55 lakhs. In Aug 2010 itself, I invested in another flat costing 80 lakhs. The possession of the second flat will be in Dec 2012/early 2013. I have also taken a loan of 55 lakhs for purchase of the flat. Am I eligible to pay any capital gains?

asked Jun 02 '11 at 03:08 by tsrama 1111


As per conditions of section 54, in order to save tax a new residential flat much be bought within 2 years from sale of old one. Possession/Registration must be done in this 2 year's time frame. If its not done, then tax exemption won't be available and tax will have to be paid on capital gains.

answered Jun 02 '11 at 13:14 by pankaj 5.2k320

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Asked: Jun 02 '11 at 03:08

Seen: 1,303 times

Last updated: Jun 02 '11 at 13:14