Tax exemption on LTCG after selling house allowed even if the new property is bought on loan
The exemption one can claim under Section 54 is the lower of the capital gains made and the purchasing cost of the new property.
Have you sold a property recently after holding it for two years and been wondering how to save 20% of the capital gains in taxes? Tax laws have an answer to this: under Section 54, you can buy or construct another house property in India with the capital gains earned from the sale of the old house. However, this is not as simple a solution as one would want it to be. For, Section 54 puts in several conditions.
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