Tip of lowering tax liability on long-term investments
Tipsy
(Querist) 10 May 2013
This query is : Resolved
Long-term capital gains from selling a house get tax exemption if they are invested in buying a new house.
The new house has to be bought in one year before the transfer of the first house
or
One can buy within two years after the sale
or .
One can buy an underconstruction apartment to save capital gains tax, provided its construction is completed within three years of the transfer of the first property
The deduction allowed is equal to the actual investment or the capital gain, whichever is lower.
Now is it necessary to get the house registered to get tax exemption or mere agreement will do ?
Santosh Sharda
(Expert) 12 May 2013
Registration is compulsory for this purpose
