Legal Question in Banking Law in India

22.02.2015

Dear Sir / Madam,

Yes, you can acquire another house on lease from the sale proceeds of your own house. There is no time limit on the period of lease. However, on the sale of the house, if any long term Capital Gains tax liability arises, then to save the Capital Gains tax, you will have to acquire a new house within two years, or construct an house within the next three years. Alternatively. you can alternatively invest in certain Government schemes like the Rural Electrification Corporation Limited or the National Highways Authority of India Limited to save on paying Capital Gains tax on the sale of your house. I suggest you consult a local Chartered Accountant in your locality to guide you correctly in the matter.

Regards,