Can I sell my house after two years?

I bought a 3 BHK apartment around 2 years back and now I was planning to sell it. To know if it would be the right time to sell it, I got in touch with a real estate agent. I asked the agent whether selling house 2 years after buying was a wise decision. He told me I could sell the house, but staying in the house for a few more years would be more sensible.

I Want to Sell My House after 2 Years. Should I?

The agent told me I could sell my house at any moment, even on the day I took possession of the house. But staying for a bit longer would do good, or else I would lose money on the transaction. 

He said that in the current market, it's pretty easy to make a profit after buying a house 2 years back. But the interest rates are pretty high right now and buying a house right after selling could be disastrous. This is because, in the current market, I have to buy a house at a much higher rate, and that could eat up the profits that I made from the previous sale. 

After listening to this, I decided not to sell the house. If you are in the same dilemma, I would suggest that you get in touch with a real estate agent for better clarification.

Since real estate transactions are frequently expensive, there may be a significant tax burden on the profits made. The Indian government has given property sellers a number of tax breaks. So if you are a property seller, then the government can allow you to pay less long-term capital tax or even nothing at all in some situations. But first, you must know is selling house after 2 years is allowed or not. Also learn what would be the tax implications on it.

Can you sell your house after 2 years?

Yes, you can sell your property after 2 years. You made money when you sold your property because you got a good price. Consider you purchased it, owned it for a year, and then sold it. If so, the sale's earnings will be viewed as short-term capital gains. These profits are included in your taxable income and taxed at the rate that applies to your particular income range. There are no exclusions for the purpose of avoiding this tax.

On the other hand, if you had owned your property for five years, the profit from its sale will be regarded as long-term capital gains. You will have to pay a long-term capital gains tax of 20 percent tax. Because real estate transactions can be expensive and there may be a significant tax expense. I hope you understood if can I sell my house after 2 years.

What are the tips for reducing capital gains tax?

If you are selling a residential property, then you may be eligible for a tax discount on long-term capital gains. It is under Section 54 of the Income Tax Act of 1961 if the gain was utilised to buy or build a residential property. Just keep in mind that this exemption only applies to long-term capital assets.

You must meet the following requirements to qualify for this exemption:

1) A residential property should be purchased by the seller whether one year before or 2 years after the selling of the actual property.

2) If capital gains are being used to build a house, that house must be finished within 3 years of the actual property's sale date.

You are now aware of is selling house after 2 years allowed or not.