quesDo 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?

  • ansIt 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 ?? known as long-term gains are taxable at a fixed rate of 20%.

  • Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at LawRato.com and has been responded by one of the Tax Lawyers at LawRato.com to address the specific facts and details. You may post your specific query based on your facts and details to get a response from one of the Lawyers at LawRato.com or book a Detailed Consultation with a Lawyer of your choice to address your query in detail.
  • Related Articles

Consult best Tax lawyers in India

Similar questions

My grandfather just handed over 1 kg gold brick to me saying that he inherited…

My house property does not generate any income. Am I still liable to pay house…
I want to start one person company and book bank fixed deposit in its name.…

I have tied up with pvt.ltd.hospital for running pharmacy on profit sharing basis. At the…

Tax Lawyers in India

Advocate Anuj Aggarwal

  Model Town, Phase 3
 Experience: 13 years

Advocate Ankita Singh

 Experience: 4 years

Advocate Sameer Hussain

  SR Nagar
 Experience: 13 years

Advocate N Sudalai Muthu

  Ram Nagar
 Experience: 11 years

View all >>

How it Works

Know how LawRato makes legal advice easier and effortless

Ask a Free Question

Post a question and get free advice from multiple lawyers

Talk to a Lawyer

Easily find and book private consults with top lawyers in India

Get Fee Estimate

Receive multiple quotations for your legal requirement instantly