Can I Use Capital Gains From Selling 3 Flats to Buy One Residential Flat and Save Tax?

Ans: As stated above, if your LTCG is Rs.28.00 lakhs & you Invest Rs.48.00 lakhs in Purchase of Residential house, with in 2 years from the date of Sale of property, there would be no LTCG.
Most welcome for any further clarifications. Thanks.

Ans: Yes, you can invest the total Rs 60 lakh in a single residential flat to claim capital gains exemption under Section 54 of the Income Tax Act. However, there are a few conditions you must follow:

Key Conditions for Claiming Exemption
The new property must be a residential house. It should not be commercial or under construction beyond the allowed timeline.

The investment should be within the allowed time frame. You must buy the new flat within 2 years from the date of sale or construct it within 3 years.

You can use the amount from multiple sales. Even if you sell different floors of your property to different buyers, you can reinvest the total capital gain in one residential flat.

The capital gains account balance should be used within the allowed period. You must invest the Rs 30 lakh in the new house before February 2026. Otherwise, it will become taxable.

Important Considerations
If the new property costs less than Rs 60 lakh, the unused capital gain will be taxed.

The exemption applies only to long-term capital gains. If any portion of your gain is short-term, it will not qualify for exemption.

You must not sell the new property for at least 3 years. If you sell it before 3 years, the exemption will be reversed, and you must pay tax on the gains.

Final Insights
Yes, you can invest Rs 60 lakh in one flat and claim exemption under Section 54.

Ensure that you buy the new property within 2 years or construct it within 3 years.

Keep proper documentation for all transactions to avoid issues with the tax department.

If you need more clarity, consult a tax expert before making the final investment.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

Ans: Yes. You can purchase a Flat Costing Rs.50.00 (L) & avail exemption u/s 54, PROVIDED your purchase of new flat of Rs.50.00 (L) is within 2 years from the date of Sale of all sold flats.
Most welcome for any further clarifications. Thanks.

Ans: Kindly confirm, when was 3rd floor constructed ? What is the source of amount invested ?
Most welcome for any further clarifications. Thanks.