Situation two: Cost of the new household ordered is in excess of the cash gains computed within the sale of the initial dwelling
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This exemption might be reversed when you provide this new home inside three many years of its obtain or construction OR if you buy An additional household property inside of 2 decades with the sale of the first asset or assemble a residential house in addition to the new house within just 3 yrs in the sale of the first asset. Cash gains from your sale might be taxed as extended-phrase funds gains.
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Having said that, if the quantity deposited within the Money Gains Account Scheme is just not used in the closing date mentioned, then it shall be handled as cash flow with the former calendar year by which three years expire (from the day of transfer of the first asset).
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