TIMING MATTERS: WHY YOU MUST DEFER PROPERTY SALE FROM MARCH TO APRIL

Deferring property sales to April may optimize tax & reinvestment advantages

- DEEPAK KAKKAR

When considering the sale of significant investments like shares and securities, vacant plots, and house properties, the timing of the transaction can have substantial financial implications. From the point of view of tax planning, the end of the fiscal year is the most important time to plan the sale of assets.

Many equity investors conduct tax harvesting of both gains and losses in March before the fiscal year ends. One other, though less famous, tax planning exercise to carry out in March is planning property sales.

Those due to sell property in March should consider deferring the sale to April to optimize advance tax payments and reinvestment planning that helps avoid paying capital gains tax.

Below is an analysis of the benefits of extending the sale from March 2025 to April 2025.

Advance tax payment flexibility