Selling property after April 1 offers tax benefits

If you're considering selling your property, waiting until after April 1, 2025, could be beneficial. Selling after this date allows you to defer capital gains tax, which gives you a full year to plan for tax-saving investments. When you sell your property before April 1, the capital gains will be taxed in the current financial year. For example, selling on March 30, 2025, would mean you pay taxes for FY 2024-25. However, selling on April 1, 2025, shifts your tax liability to FY 2025-26. This change can help ease your financial planning. Experts highlight that with a sale after April 1, you can manage advance tax payments better. Instead of paying the full tax by March 31, 2025, you can submit this amount in four installments starting June 15, 2025. This method can improve your cash flow management. Additionally, selling after April 1 extends the deadline for depositing sale proceeds into a Capital Gains Account Scheme (CGAS) account to July 31, 2026. This gives you extra time to decide how to handle your sale proceeds without facing penalties for late payment. If you want to avoid capital gains tax, you can reinvest your profits into a new residential property within specific timelines. Alternatively, you can invest in certain specified bonds. Both options allow you to save on capital gains taxes but require careful planning and timing. In summary, selling your property after April 1 offers multiple financial advantages, providing time and flexibility for tax management.