Do I need to purchase property after selling one
Is it compulsory to purchase a property after selling one? For example, if I have sold a shop then is it compulsory for me to purchase another property (house or shop) to complete the transaction Or can I use that funds for my personal use? Is there any such law in India for the same? And if I do not purchase properly after selling, how does I will get effect from taxation dept?
It is not compulsory to purchase a property after selling one .Tax provisions provide for exemptions for capital gains from the sale of a house if the tax payer invests the gains in a residential property within two years from the date of sale or constructs another house within three years. The sale of a property involves short-term capital gains tax if it is sold before the completion of three years of purchase. Such gains are taxed at the same rate as applicable to any other income of a taxpayer. However, if the property is sold after three years of purchase, the resultant gains â?? known as long-term gains are taxable at a fixed rate of 20%.
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