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Mahesh Padmanabhan  |120 Answers  |Ask -

Tax Expert - Answered on May 26, 2023

Mahesh Padmanabhan has specialised in payroll, personal and corporate taxation for more than two and a half decades, enabling him to provide practical, realistic and correct advice to his clients.
He is a member of The Institute of Chartered Accountants of India and has a degree in cost accounting from the Institute of Cost Accountants of India.
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V Question by V on Apr 04, 2023Hindi
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Money

I have booked a flat in an under construction project and the possession is December 2027. Can I sell my existing old flat now or I have to wait for another year ( 3 years before the possession of the new flat) for taxation benefit.

Ans: Hi V
Did not understand your question correctly. Assuming that you are asking that you would want to sell your existing house and reinvest in the under construction flat, here is the response.

You would need to get the possession of the house by reinvesting the capital gain portion from the sale of existing house within 3 years from the date of sale of the existing property.

Accordingly, as the possession is only in December 2027, you may breach the timeline if you sell your existing property now. Time your sale appropriately.

You would need to park the capital gain portion in Capital Gain Account Scheme (CGAS) account with any nationalized bank and transfer funds from that account based on construction linked payments
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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