1. Yes, you can do the same but after paying the capital gains tax on the gains accrued (if any). If you do not want to pay tax then you have to buy/construct another residential property or invest in capital gain bonds.

  2. I have opened a capital gains account in sbi after the sale of my residential building. Now can i invest this money in buying commercial property??

    • No, you have to buy residential property only if you want to save capital gains tax. As per rules, Investing in Commercial Properties would not help you save taxes.

    • To save capital gain on the sale of a flat (residential property) you either have to buy another residential property within 2 years or 1 year before the sale of property or you may also construct a property within 3 years from the date of sale of the property, from the gain amount.

      The other option is to invest the capital gain in the specified Capital gain bonds available under section 54EC, worth the capital gain of the transaction, within 6 months of the date of sale. However, the maximum amount to invest in these bonds is Rs.50 lakhs per financial year.

  3. I have sold a commercial property at 1 cr. The indexation cost is 65 Lakhs.
    To save capital gain tax at what price shall i purchase a new property

    • To save 100% of capital gain , you need to buy property valuing 1cr, since you have sold Non Residential property. Alternatively you may buy capital gain bonds. As in buy Rs 35 lakh of Capital gain bond ( as the capital gain value) and buy property of any amount as now the capital gain tax will be taken care by the bonds. Be in touch with some good CA for further calculation and clarification

      • 1. What if in case selling of residential property (land) of 1 Cr, and re-investing the same 1 Cr or more in another plot/ land (residential or commercial), do I avoid the tax completely?

        2. If so then in what duration I have to do such transaction.

        • Plot is as good as commercial property. The same rules of Section 54F would apply, i.e. you have to invest the entire sale proceeds into a residential property to gain full tax exemption on the capital gain. Else, you would get exemption on a prorate basis.

          You can buy the new residential property within 2 years after/1 year before the sale of the property or costruct it in the next 3 years.

  4. person having 3 residential property and if he sells one residential property thereby incurring LTCG and the amount is invested in another residential property does he get exemption from LTCG

  5. Is it true that if I sell a commercial property then the entire sale proceeds need to be reinvested in a residential property (not commercial) to save CGT. Also at the time can I be owning other residential or commercial properties. Thank you

    • Yes, this is true. Either you have to invest the entire sale proceeds in a residential property or have to invest the gain amount in Capital Gain Bonds to save Capital Gains Tax. As per our knowledge, there is a restriction of owning two residential properties, one prior and the other to save capital gains tax. For commercial properties, there may not be any restriction as such. But before taking any action, please consult a good CA or any tax expert.

  6. We have sold our parental (agriculture land) property cost 1 cr aprx
    Already we have two house in our name
    Can we purchase commercial property to save capital gain tax
    Please breef

  7. Is about capital gain tax, do i have any chances not to pay those taxes on a commercial property that i own for over 15 years?

    • In order to save Capital Gains tax, you need to either invest the complete sale proceeds of the commercial property in a residential property. The other option is to invest the gain amount in Capital Gain Bonds under section 54 EC.

    • No Abhishek,
      In order to save tax, you need to invest the sale proceeds from the commercial property in a residential property. The other way is to purchase capital gain bonds.


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