Purchase of house, avoid capital gain.

[sinha subod]

1. We sold ancestral property of pre-1980 vintage. Have applied for valuation as in 2001. 

2. Have been given to understand that paying capital gain at flat 12.5% without indexation will be more beneficial, i.e. approx. 75lacs.

Ques1. What will be additional surcharge / cess on this. I also will have approx 25lacs business income.

3. How can I save this capital gain by investing in another house / property. Details of my existing properties are:
     a. Property01 - Purchased after selling one property each by self and spouse, and capital gain benefits availed. 

     b. Property02 - This property has been paid for from personal savings and through govt loan and possession taken in 2012. However the property has not been registered in my name. There is no individual issue as the full society has not been registered since DDA alloted an institutional plot to a Govt Organisation CGHS. Same is being regularized. I am paying property tax to MCD, and ground rent to DDA since possession, and showing rental income in my ITR for past 10 years. However, reiterated, that this property is still not registered/transfered (first owner) in my name till date (which may happen later this year).    

Ques2. Can I purchase one house to save capital gain, as technically only one house is registered in my name. 

4. In case it is permissible, what is the time limit for purchasing property without opening a capital gain account.

Ques3a. Do I have to purchase it before 31-March, 2026?
Ques3b. Does it imply full payment, or registry before 31-March, 2026?    
Ques3c. What will be the additional rate of interest for payment on unutilized capital gain, as and when paid?

Thank you very much Patrons, since I am in another state and getting varied advice to reduce payment of full capital gain, which is substantial.

Thank you,

Subodh   

AI Summary

Tax treatment of ancestral pre-1980 property sale: 12.5% flat option, reinvestment rules, registration, deadlines, surcharge implications Seller disposed of ancestral pre-1980 property and seeks tax treatment: whether to opt for flat 12.5% tax without indexation, and applicable surcharge/cess given ~25 lakh business income. Questions on saving capital gains by reinvesting in residential property arise against facts that one claimed earlier rollover benefits and another residence is in possession since 2012 but not yet registered though being used and declared as rented. Seeks whether only registered properties qualify for exemption, the deadline for reinvestment or deposit into capital gains account (whether by 31-Mar-2026), whether payment or registration is required, and the interest/penalty on unutilized capital gains.