A month ago, my brother acquired Rs. 40 lakh from the sale of a joint apartment that we owned. Since the flat was sold for less than the Rs. 40.50 lakh we paid for it 10 years ago, there is no capital gain. To understand what happens when you sell a property at a loss, I researched online. I found in India, a seller who sells a property at a loss may face various financial and tax consequences. I have shared those impacts below.
If I Sell My House for a Loss What Happens?
Here are a few consequences of selling property at a low price I came across.
The seller suffers a capital loss when a property is sold for less than the purchase price.
A loss from the sale of real estate that has been owned for longer than 24 months is referred to as a long-term capital loss (LTCL). You can only deduct LTCL from your property's Long-Term Capital Gains (LTCG) under the income tax regulations.
The seller's future investment choices and financial well-being may also be impacted by selling a property at a loss.
A loss on the sale of a property may be offset by capital gains from other assets acquired during the same fiscal year. However, precisely identifying the type of loss is necessary to be eligible for this offset.
I would suggest you go through the repercussions before selling your property at a low price.
Avail NoBroker Seller Plan and Get Help in Selling Your Property at Fair Price.
Also check
Your Feedback Matters! How was this Answer?
Make Every Corner of Your Home Festive Ready !
✔
Trained & Experienced Partners✔
Best Prices✔
Quality Assurance
Home Painting
Get Free Estimate
Home Cleaning
Book Now
Home Renovation
Get Free Quote
Electrician Services
Book Now
What Happens When You Sell a Property at a Loss?
Armaanm9
25 Views
1
23 days
2025-05-28T08:44:53+00:00 2025-05-28T08:44:54+00:00Comment
Share