Hi sir/madam
I wanna ask that i have already a capital gain account for rs 30 lac Whose 2 years going to complete in feb 2026
Now i have just 2 flat left- ist floor, 2nd floor with tarace
Now 3 different- different person want to buy ist, 2nd and terace, means 3 registry will made, now approxy it will generate 10 lac per floor capital gain after indexation... Meqns total 30 lac
So this 30 lac+ capital gain account 30 lac.. A total of 60 lac can i invest in 1 residentiql flat... Is it possible that i will invest in one flat against sale of 3 flat + capiral gain account amount...
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
Asked on - Mar 28, 2025 | Answered on Mar 29, 2025
ListenHi I have bought flat in 1988 @ rs 1 lac And as per cerificate property value is 5 lac in 2001 And ibam going to selll it @ 22 lac in may 2025 then what will be my tax liability on it
Ans: Your capital gain will be calculated using the Indexed Cost of Acquisition (ICOA) based on the 2001 valuation of Rs. 5 lakh. After indexation, the Long-Term Capital Gain (LTCG) will be taxed at 20% after applicable deductions. You can reduce tax by reinvesting under Section 54 (buying another property) or Section 54EC (bonds).
Best Regards,
K. Ramalingam, MBA, CFP
Chief Financial Planner
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
Asked on - Mar 29, 2025 | Answered on Mar 30, 2025
ListenSir kindly calculate plsss
Purchase date 26/5/1988
Amount 1 lac
Sell date around 20 April 2025
Amount 22 lac
Ans: For specific tax calculations and detailed financial projections, it is advisable to consult a Chartered Accountant (CA). They can provide accurate tax planning and personalised advice based on your financial profile.
Best Regards,
K. Ramalingam, MBA, CFP
Chief Financial Planner
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment