We signed agreement to sale our flat in Delhi on 31st March 2025 and started house hunting in Bhopal online immediately on sites like 99acres, magicbricks. We contacted no of owners on whatsapp. We visited Bhopal between 05 April to 15 April 2025 and booked a ready for possession flat on 15 April 2025. I liquidated my wife's SCSS and Fixed Deposits with Shriram Finance and managed to pay full amount for the flat to the builder on 19 April 2025. I also paid for Registration charges, Stamp Duty, Advocate's fess to the Advocate looking after registration. On 21st April 2025 the flat was registered in my name.
Before deciding to sale Delhi flat I had obtained Valuation Report of my flat from Govt approved Valuer in Feb 2024. The Conveyance Deed was done in DDA office in Dec 2024.
Bhopal flat was bare bought from Builder and we had to do Modular Kitchen, Wardrobes and Builder had to fix Sanitary fittings and do final coat of painting. The flat was ready on 13 June 2025. Then we fixed Ceiling Fans, Tube Lights, RO, AC, Chimney over Kitchen slab, PNG connection to new Gas Stove by 17 June 2025.
The registry of Delhi flat was done on 27 June 2025 and we moved to Bhopal on 28 June 2025 in our new flat.
Now regarding the Capital Gain due to the sale and its neutralization to zero.
The Valuation Report declared the value of the flat as on 1st April 2001.
Then the indexation cost was calculated on date of sale
The Capital Gain was Sale Price - Brokerage - Indexed Cost
Following are deductions
Under Section 54 the Cost of new flat including Registration, Stamp Duty and advocate fees.
Under Section 54EC REC Bonds purchased by me on 05 July 2025
Deductions being more than the Capital Gain the income tax is ZERO.
However while filing the income tax return some confusion is created because the tax filing software does not allow any indexed cost or investments under Sec 54 and 54EC and calculates the tax payable. But it ignores the calculated tax under
