I bought an apartment seven years ago jointly with my husband. Now if I sell this flat and buy another flat in the same city itself, what are the capital gains implications on this transaction?


Answered on November 09, 2017
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  • There would be no capital gain tax if you sell the old residential flat and buy another residential flat as the capital gains can be claimed exempt u/s. 54 of the Income Tax Act. The exemption will be to the extent of investment in the new residential flat or the long term capital gains arising on sale of old flat, whichever is lower. If the investment is lower than the long term capital gains, then the capital gains tax incidence would reduce proportionately.
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