Background: I have bought a flat worth 2 Cr recently (taken a loan for 75% of this amount). I am now going to sell a different flat of mine for 1 Cr (no loan pending).
Question: Can I use the proceeds of this sale to eliminate any long term capital gains by channeling the profit as a pre-payment towards the loan taken for the 2 Cr flat?
Kindly advise since I am getting contrasting views.
If the buying date of new property is before the selling date of your existing property, then how can you adjust this?
Ok thanks. So essentially, what this means is that the ‘flat sale’ needs to happen before a ‘buy’ so that the true profit of the sale can be diverted towards buying another property (or the relevant prescribed bonds by the govt). Hope this is correct.