Capital gain on two Flats

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ckppmarathe asked 9 years ago

I own two residential flats. I want to sell both in current FY. One flat was bought in 1998. Second I received by will of my uncle in 2007. I want to reduce capital gain tax on one flat by investing in the bonds meant for this purpose. I want to reduce tax on second flat by investing the gain in a new residential flat. Can I do this in the current FY or I have to do it in two different FYs?

3 Answers

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Sreekanth Staff answered 9 years ago

Hi, Yes, you may do so in the same Financial Year. Kindly read : https://www.relakhs.com/how-to-save-capital-gains-tax-on-sale-of-land-house-property/

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ckppmarathe answered 9 years ago

Hello Sreekanth, Thanks for the prompt reply. But the above answer is too short. I have already read the above referred blog. What I what to know is if the gain from the two flats is added together for tax purpose. In that case can I use both the options of investment in bonds and buying a new flat for saving tax. Or only one of the two options are available to me.

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Sreekanth Staff answered 9 years ago

Hi, 1 - if you sell more than one property, you can invest the resulting cumulative capital gain (from both the properties) amount in a single new property. (or) 2 - You can also avail both the options (bonds & investing in a new property as well).