Hi Sir,
I am buying and making full payment for a New Residential Property in Feb 2024 Costing Rs.1.5 Cr.
Also, I will be selling one of my old properties for Rs.1.1 Cr. in March or April 2024. This was purchased in 2009 for Rs.36 Lakhs, Capital gains is of Rs.38 Lakhs after indexation.
PS. I own 4 Residential Properties as on date.
My query is, if I make the payments for my new property from my Savings, prior to selling and receiving the payment of my old property, what is the Tax implications for the Capital gains.
Secondly, I have also sold my Mutual Fund with long term capital gains of 12 Lakhs, can I claim tax exemption if I invest in the new Property.
Looking forward to your valuable advise.
Thanks
Ramesh
Ans: You will have to pay LTCG on old property sale @ 20% with indexation which would ~7.6L
Sec 54F benefits are applicable for second property. Since you already have 4 properties in your name I believe you won't be eligible to claim benefit from LTCG accruing out of MF sale transferred to acquire RE property, however suggest you seek alternate opinion from CA.