Sale of second flat - tax implications...

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Jithesh (Querist)
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01 June 2015 I booked a Second house in year 2012 from a builder and got possession last year (2014), am availing all tax benefits like interest on home loan I paid during the construction phase etc.

My query is if I sell this flat (second house) with-in first 5 years of purchase "to buy another flat" in a different location do I need to pay tax on sales of fixed assets or on the Income tax benefits I received from home loan?
Will 5 years be calculated from the date of possession or from the date of booking the house under construction linked plan?

ramprasad

ramprasad (Expert)
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02 June 2015 Sale of flat is subject to capital gain.
5 years should be computed from the end of financial year in which possession is taken

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Jithesh

Jithesh (Querist)
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04 June 2015 Dear Ram sir,
Thanks for the clarification.

If within 5 years of possession, I sell the house to buy another flat I believe tax will be computed only on the capital gain in excess of the cost of the new house; right?

I believe the sale will not have any impact the tax benefits I have already availed for 2 years; if I am buying a new house within 3 years of sale, kindly confirm?

Thanks

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