House Property sold, and other under construction. What tax deduction can I claim?

I sold a House Property in Feb 2020, and my new house is under construction for the next 1.5years. In meanwhile my family and I are living on rented property. Do I have to pay the tax this amount I receive?

Hey Manav,

You can claim the lower of the following amount as a deduction u/s 54:

  • Amount invested in the new house property
  • Capital gains

If the purchase of the new house property is:

  • Purchased within 2 years of the date of sale
  • Constructed within 3 years of the date of sale

Provided the following conditions are fulfilled:

  • You cannot sell the new house property for 3 years from the date of purchase
  • If not able to buy new house property before filing the Income Tax Return, you can deposit the amount in Capital Gains Deposit Accounts Scheme to claim the exemption