Online House Hunting

How to buy new house before disposing earlier one?

I own an apartment in Delhi. I want to shift to another part of the city. Recently my father-in-law has disposed of his house in Delhi. Is it possible that he buys an apartment in my or his daughters name out of his funds and I move to that house, then I can dispose of my house and buy him back a new house. Is it correct to carry out such transactions from the capital gain and or other tax related issues prevalent in India?

Public Comments

1. the tax laws allows one year time for reinvestment to avail the tax benefits on capital gain tax. if you use your father-in-law's funds for your purchase, you have to dispose your apartment within the time and fix a property for your father-in-law. then it is perfectly alright.
2. If you want to purchase new house before selling old one, you can apply for a bridge loan. To save LTCG tax new house can be purchased one year prior to sale of old house. Let your F-I-L invest his proceeds in a new house, within one year, in his name to save LTCG tax. HMT