If you’re planning to sell your property, make sure to wait until April 1, 2025. The primary advantage is the deferment of capital gains tax. By selling the property after April 1, the capital gain will be taxed in the following financial year, giving you an entire year to plan your tax-saving investments.
For example, if you sell your property on March 30, 2025, the capital gain will be taxed in FY 2024-25. However, if you sell it on April 1, 2025, the tax liability will shift to FY 2025-26. Additionally, selling after April 1 allows you to submit the advance tax in four instalments starting June 15, 2025, rather than paying the entire tax amount by March 31, 2025.
Furthermore, experts say the deadline for depositing sale proceeds into a Capital Gains Account Scheme account would be extended to July 31, 2026, instead of July 31, 2025, giving you an extra year to decide how to handle the sale proceeds. “The primary advantage is the deferment of capital gains tax. By selling the property after April 1, the capital gain is taxed in the following financial year, giving you a full year to plan tax-saving investments.
For instance, if you sell your house on March 30, 2025, the capital gain will be taxed in FY 2024-25. However, if you sell it on April 1, 2025, the tax liability shifts to FY 2025-26,” says Rahul Singh, senior manager and tax and corporate advisor, Taxmann. So, instead of rushing to plan your taxes, you have the luxury of a year to make proper tax planning deci.
