Capital gain on second house

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Ajay Kumar Barnwal (Querist)
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27 September 2012 Dear Freinds,

Good day

Want your expert advice on following issue:-

In 2002, we purchased a residential house property in Delhi by taking a bank Loan. In 2004, Due to New Job we shifted to Ahmedabad. Here in 2005,we again booked a residential house thru Home loan. The conveyance deed executed in 2006. We have no any income from House property in Delhi. Now we want to sell the house in Delhi and from the consideration, again want to purchase a second residential house in Ahmedabad.

My query is ------> The capital gain that will arise from sale of first house (Delhi house) will be taxable if withing 6 month we bought house ?

What would be best tax planning to avoid Capital gain Tax?
Please advice us.

Regards

Ajay Barnwal

Pankaj Gupta

Pankaj Gupta (Expert)
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27 September 2012 You can claim exemption under sec 54. Here you are required to use the whole of capital gain (on sale) for the purpose of purchasing a new house property within a period 1 year before or 2 year after the date of transfer.

But purchase the new asset before the due date of filling of return. Otherwise deposit the amount of capital gain with a bank in capital gain account scheme and then use the amount within 2 years.