Explained: Income tax implications on the sale of residential property
The exemption in respect of long-term capital gains on the sale of a residential house held for 2 years or more can be claimed if the indexed long-term capital gains are invested for the purchase of another residential house within two years from the sale of the original property.
I sold my residential house in June 2022 which was acquired by me in 2014. I invested the fully indexed long-term capital gains in another residential house in December 2022 to claim exemption from tax on long-term capital gains. Now I am planning to sell the new house, bought in December 2022 in January 2024. What are the tax implications of this transaction?