Dear Team,
For a property Sale consideration, if I plan to invest the money in another property only, then in that case, within how much time should I buy the real estate property so that I dont get any tax liability
Hello @Patl_Pel
If you sell a property and want to save tax on the capital gains, you must purchase another residential property within 2 years from the date of sale or construct a new one within 3 years. If the property is not purchased before the due date of filing the ITR, the capital gain amount should be deposited in a Capital Gains Account Scheme (CGAS) before the filing deadline to claim tax exemption.
Can I transfer money received from property sale to my mother? then subsequently do next property purchase under her name only, is it possible.
If needed, I can do gift deed as well
Hello @Patl_Pel
Since the property you sold is registered in your name, you are responsible for paying the capital gains tax. Additionally, to qualify for the capital gains exemption, the new property must also be purchased in your name.
Reinvesting money from a property sale in another property is a smart move. It helps grow wealth, provides rental income, and increases value. Real estate remains a stable asset, and reinvestment can also offer tax benefits, especially under capital gains exemptions like Section 54 in India.
Hi Swapnil,
Provided that there are no capital gains, then , is it possible to transfer to my mother’s name?
Hey @Patl_Pel
You can transfer the money received from the sale of property to your mother. It will be treated as a gift and should be reported as exempt income in the ITR.
Hope this helps!