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?

Answers (1)


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


Googling your legal issue online?

The internet is not a lawyer and neither are you.
Talk to a real lawyer about your legal issue.

Popular Tax Lawyers


Advocate Bala Janaki
330 Thambuchetty Street, Chennai
35 years Experience
Advocate Rajeev Nigam
Kanpur Nagar, Kanpur
26 years Experience
Advocate Ravi Jadhav
Koregaon Park, Pune
12 years Experience
Advocate Kanwarjit Singh Pruthi
District Court, Patiala
37 years Experience

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 contact a Lawyer of your choice to address your query in detail.

Related Questions


"LawRato.com has handpicked some of the best Legal Experts in the country to help you get practical Legal Advice & help."