Capital Gains House Propoerty

I have a house (House 1) registered in May 2013. I purchased another under construction flat (house 2) (letter of allotment received in December 2016, and Registration done in April 2017).

Can I sell House 1 in 2018 and still use the proceeds to pay for any demand raised for house 2, need to understand the timelines I should keep in mind and also the tax implications.

frudo Asked on September 6, 2017 in Taxations.
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1 Answer(s)

Hello Mr Frudo

The First house which is purchased in 2013 can be sold in 2018 as its more than two years holding period. Now you can pay the money received towards payment of second house . To Claim the exemption of capital gain of first house you need to purchase one year from/ after sale  of first house and three after for construction.

Regards

TaxIQ Answered on September 6, 2017.
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