Tax implication for selling one under construction property and buying another ?

POSTED BY Aravindnar ON February 3, 2014 10:17 am ONE COMMENT

Dear Sir,

I have purchased an under construction residential property in Jan 2010 for 50 lakhs (agreement signed same time). I intend to sell this property (possession not yet given) for 80 L and intend to use this amount to purchase another  residential property within one year. Please advice whether the 30 Lakh profit earned from sale of first property is taxable under long term capital gains ?

Regards

Aravind Narayanam

 

One reply on this article “Tax implication for selling one under construction property and buying another ?”

  1. ashalanshu says:

    Dear Aravind, as the property is not under your possession, the gain ‘ll be STCG and you can not save your tax liability by investing in another residential property.

    Thanks

    Ashal

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