Capital Gains Exemption if new house sold before 3 years

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  1. Suren

    Suren New Member

    I hv taken Capital gain deductions ( long term CG) for my current flat against sale of my earlier flat in the AY 2014_15 Due to some problems in my present flat which was not foreseen/ noticed earlier while buying. (i am presenly staying in this house.) I now wish to shift to a new house. It is only 1.5 yrs now since I HV bought this house. Is there any way to protect my CG deductions taken in my earlier sale transactions if I buy a new house having value higher than the current house value( which I HV shown for tax deductions) and also higher than the Sale value of this house ? I HV no interest in any Gains to b made from this transaction , but a change is needed due to problem in this current house which I was not aware while purchasing it ?
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    As you have already claimed exemption for this new house, you will have to hold this house for a minimum period of 3 years. If you sell before 3 years, the capital gains exemption claimed by you earlier will get reversed and you will have to pay tax on the same.

    There is no way to avoid this and you will either have to hold this for 3 years or pay tax on the capital gains which have been claimed as an exemption earlier.
  3. Suren

    Suren New Member

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