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Selling 2 smaller flats and purchasing a bigger flat – How to handle Capital Gains Tax ?

We want  to sell 2 smaller  flats and purchase a bigger flat. The flat we wish to purchase is second hand. I wish to know

1) Can the proceeds of sale of 2 flats be invested into a single purchase as mentioned above. what is the implication on Capital Gains Tax. sec 54 of IT act.

2) Does the Sec 54 allow investment  of the gains only on a new construction or can we purchase a second hand flat also.

Regards

Sudha

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