Capital gains exemption on sale of residential property: reinvestment in a new house defers taxable gain. Disposal of a long term residential house by an individual or HUF is eligible for exemption from tax on the capital gain to the extent the gain is ... Summary
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Capital gains exemption on sale of residential property: reinvestment in a new house defers taxable gain.
Disposal of a long term residential house by an individual or HUF is eligible for exemption from tax on the capital gain to the extent the gain is reinvested in a residential house in India purchased within one year before or two years after transfer, or constructed within three years. If reinvestment is less than the capital gain, the unutilised amount must be deposited in a notified bank/institutional scheme before filing the return and is deemed part of the new asset's cost; unutilised deposited amounts not invested within the statutory period are charged as income when that period expires.
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