
I am writing this email to enquire about section 54 for availing the capital gains from the sale of my flat. As per the internet search, I can use the capital gain from the sale of a flat before 1 year of purchase or two years after the purchase of a new flat. I have the following queries.
1. The one year before the purchase of a new flat. The date for counting 1 year is the registration date of the new flat or the possession of the flat. In my case, I have booked the under-construction flat. Suppose if I do the registration of the flat on 15th Nov 2025, then my old flat needs to be sold before 14th Nov 2026 to avail the capital gain benefit?
2. If the above is true, then which documents do I need to produce to avail the capital gain benefit while filing the income tax return in FY 2026-27? For example, if I get 1 Cr from the sale of the old flat, which I do pre-payment of the Loan taken for the purchase of the new flat. Can the pre-payment receipt be a valid document to avail the capital gain benefit?
3. This query is the extension of point 1. For the under-construction flat, can the capital gain benefit from the sale of the old flat be taken till the possession of the new flat is obtained? In my case, the under-construction flat will be completed in December 2027, and if I sell my old flat, say, on 15 November 2026, can I still avail of the capital gain benefit?
Please answer my queries.
Ans: Section 54 Query
Sir, to give a precise answer on capital gains exemption, we need your full details (exact sale date, registration date, possession timelines, etc.). These nuances matter for eligibility.
???? It is strongly advised to check with a Chartered Accountant (CA) in your nearest location for proper guidance, documentation, and tax compliance.
Best regards,
Naveenn Kummar, BE, MBA, QPFP
Chief Financial Planner | AMFI Registered MFD
???? www.alenova.in
| https://www.instagram.com/alenova_wealth