Hi, I have finalized a 3 BHK flat and I am in the process of purchasing it by taking home loan. Presently, I own a 2 BHK where I am staying. I want to sell my 2 BHK and make partpayment of homeloan. In that case, do I need to pay tax on LTCG. The 2 BHK flat, I purchased in Apr 2003. Do you advice me to wait and sell 2 BHK before buying 3 BHK to get LTCG tax benefit ? Thanks a lot in anticipation. Regards, Ashok
1 Answers
In case whole long term capital gains (computed with indexation calculations) from sale of old flat is invested back into another residential property within period of one year before sale of old flat and two year after sale, then there is no income tax payable.
You need not to wait for old flat sale, but you will have to sell old flat within one year of buying new flat.
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