How Capital Gains is calculated if Sale & Purchase of House is in Same financial Year ?

POSTED BY G Sagar Yadav ON January 7, 2014 2:08 pm COMMENTS (3)

Dear Readers,

First of All, a very happy and prosperous new Year to all of you. I have a query regarding Capital Gain tax applied if I buy a property and then sell another property in same year.

For Example,

I bought a property in April 2013 Valued approx 75 Lacs ( Under construction property to be completed in 3 yrs time). And Now I am willing to Sell another property valued over 40 lacs. My Query is whether I have to pay Capital Gain Tax over 40 Lacs or this amount can be adjusted in my first property purchase (75 Lacs). My only concern is to not pay capital gain tax or any other tax related and invest the entire amount in other property.

Thanks in advance,

3 replies on this article “How Capital Gains is calculated if Sale & Purchase of House is in Same financial Year ?”

  1. ashalanshu says:

    Dear G Sagar, you mean to say, you ‘ll sell 75L Rs. house also in the same FY with some profit and use the combined amount to purchase another property. Can you provide daytes and numbers for the sequence you are mentioning? As I’m getting confused here.



  2. G Sagar Yadav says:

    Thanks Ashal,

    What If I am selling the second house also before possession in order to get 3rd House with all the money i got from 2nd House. in the same financial Year.


  3. ashalanshu says:

    Dear Sagar, you ca set off your Capital Gain Tax liability from the 1st house, against 2nd house. Only important thing is – the possession should be there within next 3Y from the date of sell of 1st house.



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