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Sayed Maqsood Ahmed   09 December 2022

sale of flat

dear learned advocates

i am planning to sell my 2bhk flat for 53 lakhs now which i purchased in 1998 for 10 lakhs in maharashtra state

how can I avoid capital gain tax after indexation and how much cash money can I take from buyer etc

please advice quickly

Best regards


 6 Replies

Dr J C Vashista (Advocate)     09 December 2022

Re-invest the consideration within prescribed limit.

Sayed Maqsood Ahmed   09 December 2022

Many thanks Dr for your valuable opinion 

Best regards 

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     09 December 2022

The long-term capital gain on the sale of property is exempted if the proceeds are invested in the purchase or construction of a house. The purchase of property can happen a year before the sale of the property in question or two years after its sale.

Sayed Maqsood Ahmed   09 December 2022

Dear learned advocate 

Appreciate your valuable views 

Best regards 


Though I'm neither an advocate nor a CA but as per acts and rules, if you fall under the capital gain tax and do want to use the GAINED CAPITAL you can do so after paying a tax since by selling the flat you are actually gaining.

How much amount you are actually gaining needs to be calculated considering some bullet points which may be of help to you. If you don't want to use the sale proceeds either by purchasing a flat or land in any part of the country and instead you want to use it then you have to pay the CAPITAL GAIN TAX as found after indexation and calculations.

Quantum of capital gain and the tax impact, you, yourself can calculate the same if you put your question in Google and without paying any fees to any CA or Tax Consultant or Advocates etc.

It is true that there may be or may not be a capital gain considering the fact and calculations that the property in question purchased in 1998 against an amount of Rs. 10.00 lacs is being sold now in the year 2022/2023 and now planning to sale .

You have to find the actual gain based on indexation and some other relief to which you are eligible.

However, if you don't want to use the sale proceeds and instead want to purchase an another ready to enter Flat in any part of the country, you have to do so within six months of sale of the said flat provided you use the total sale proceeds in purchasing the flat.

If you want to use the sale proceeds by purchasing a piece of land and get constructed a house on the same, it has to be completed within six months from the date of sale of your flat in question. You have to use the total sale proceeds.
Doing anyone of these two, you won't pay any Capital Gain Tax.

And if you don't want either to purchase an another flat or land and construct a house on the same then you have to invest the total sale proceeds in certain bonds of the government of India. By doing so you don't pay any CAPITAL GAIN TAX. (For finding the exact CAPITAL GAIN, my humble suggestion is to get it done by a competent individual CA or CA Firm who has registration number from the ICAI. Please note that after the SATYAM fiasco it is mandatory for each and every CA to get registered with the ICAI and reflect the registration number on the documents he/she/firm will provide you and they have been made accountable now).

Please don't fall in the prey of any crooks.

York Damon   28 December 2022

If you don't want to spend the money you get from the sale on a new place to live, you have six months to kipas guys buy another ready-to-enter property in any area of the country, as long as you use the entire sale price to do so.

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