Long term Capital gains tax on property

I have purchased residential property “A” in 2006-2007, I again purchased a property “B” in 2011-2012 50 % paid by me in my name & 50 % paid by wife in her name.

Now i sell property “A” in 2014-2015 & buy a new property against that capital gains as i was residing in porperty “A”. So is this exempt?

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As long as it is a residential property that you are selling(even if you reside or not), whatever is the gain that you are re-investing into another property is exempt.


thank u so much for the answer, my only concern was that if i have 2 properties including that still its exempt…thanks again


My son is buying residential property of Rs. 5 crore in his name .

I am owning a commercial property which i purchased in my name 10 years back .
Now its value is Rs. 1 crore .

My son needs money . So . I want to give Rs.1 crore to my son . As gift .

I have 2 options :

(1) transfer gift . my proprty in my son’s name then let him sell that property .


(2) let myself sell my property and transfer gift the money to my son .

Which option is better from tax perspective ?

Which option i get more capital gain tax benefit ?

Which option is better for me? And which option is better for my son ?

Why ? And how ?

Hi @RLM, we suggest you go with the first option, wherein you gift the property to you son, which will be tax exempt (as he falls under the definition of ‘relative’ under Income Tax Act). Following which your son can sell the property and buy the new residential property and claim exemption under section 54F, if all the conditions are fulfilled which you can read in the following article.

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Capital gain from sale of property is below exemption income limit after considering property indexation.

other income is interest from bank.

capital gain is also consider under exemption?

Hey @Private,

Yes, the basic exemption limit is applicable in the case of Capital Gains (Except in the case of NRI). Hence, if your total income is below Rs. 2.5 Lakh, the same will not be taxable.