Selling and buying property these days has become very easy. At the click of a button, you will find hundreds of options to buy as well as sell a property. As there are many online realty websites available, it has become quite effortless unlike the olden days, where people used to go to a broker and ask him to find a suitable buyer or seller.
Now, the most important part, there is an added benefit if you sell and buy a property simultaneously. Be it Short Term Capital Gain (STCG) or Long Term Capital Gain (LTCG), you can be exempted from it if you buy a property within 24 months from the date you sold your property. However, to save the entire tax, you will have to reinvest the entire amount. If you don’t want to invest the entire amount, then the LTCG/STCG will be applicable depending on the remaining amount.
There is another important factor. You cannot be exempted from the exemption from capital gains under section 54F is that you should not be holding another property or any other similar asset while you are transferring the property. However, you can be eligible for the tax exemption if you have bought the property 12 months prior to selling the property. According to the law, you are allowed to re-invest in a new property even before selling the old one if it is bought 12 months prior.
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Authors Of The Question
want to sell old house and buy new property
Rakesh A Kulkarni
1127 Views
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4 Year
2020-12-20T16:58:12+00:00 2020-12-20T22:54:07+00:00Comment
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