What is the time duration that we need to invest the amount we get from a property sold. (INDIA)?



Hi,

What is the time duration that we need to invest the amount we get from a property sold.
Apartment sold now how much time will i have to buy one without any issues with taxes.

Short term capital as i sold it before 36 months.

Any ideas…

What is the time duration that we need to invest the amount we get from a property sold. (INDIA)?
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6 Replies to “What is the time duration that we need to invest the amount we get from a property sold. (INDIA)?”



  1. Read carefully.

    If you purchased the property, that you are planning to sell (or have sold), at least 3 years before the sale, then there is no short term capital gains tax.

    However, if the property in question was acquired by you less than 3 yrs ago, then there would be short term capital gains tax. To save that tax you will have to re-invest basic amount and profit (after deducting any interest paid for loan) in a new property. You will have 12 full months for this transaction.

    Example, if you sold the property on 15th July 2008, you can buy the property latest by 14th July 2009. The dates are taken from the date of registration of the documents with sub-registrar’s office.

    The other option is to re-invest the money in Capital Gain Bonds, like the ones offerred by Rural Electrification Board ot NABARD. Note that the ROI will be to the tune of 5.5%. But there will be no Short Term CG Tax.

    ATB


  2. there are no exemptions inproperty sales profict if sold before 36 months u have to pay short term capital gains tax onthe profit amount



  3. You are not eligible for exemption under Section 54. It applies only to LTCG.
    You have to add the entire gain to your total income and pay tax.
    More over if the amount is more than Rs 5000/- you have to pay advance tax under Section 208 & 234C, by 15th of Sept.(15%), 15th of Dec.(60%) & 15th of March (100%).
    .





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