New Delhi, April 27 -- I have been living in Singapore for 15 years. In February 2025, I sold my old residential property and used the proceeds to buy a new residential property. I had claimed capital gains exemption at that time. I have to sell this property for some emergency purpose. What will happen to the exemption that I had claimed earlier?

Under the Income-tax Act, 1961, exemptions such as those under Section 54 are subject to a three-year lock-in period. If the newly acquired residential property is transferred within this period, the exemption previously claimed is withdrawn and becomes taxable.

Following the repeal of the 1961 Act and the introduction of the Income-tax Act, 2025 effective 1 April 2026, such cases are governed...