I have sold my old flat for Rs. 45 lakhs with LTCG of Rs. 18 lakhs. I will utilize the money in buying a new house for Rs. 60 lakhs. For remaining amount, I will borrow home loan. If I sell my 2nd flat next year and use the proceeds in repaying home loan, will I be able to save LTCG tax.
As per section 54, you can claim exemption if you use the amount in purchasing another house property before one year of sale or within 2 years of the sale.