Recently I sold a plot that was acquired way back in 2003. I am looking to avoid Capital Gains tax. For this I will invest the total sale proceeds into 1 house and a flat (2 properties).
I was told by a friend that the sale proceeds of one property has to be invested into another only 1 property to avoid captal gains tax. More than 1 property is not considered in avoiding Capital Gains tax.
Is this understanding correct? Please advice the related IT Clause.
Capital Gains Tax on sale of Property
Capital Gains Tax on sale of Property
Section 54. -
[QUOTE]one year before or two years after the date on which the transfer took place purchased 68], or has within a period of three years after that date constructed, a residential house,
A residential house.
Further residential house would imply only one. I guess a good lawyer may be able to stretch it but unlikely.
[QUOTE]one year before or two years after the date on which the transfer took place purchased 68], or has within a period of three years after that date constructed, a residential house,
A residential house.
Further residential house would imply only one. I guess a good lawyer may be able to stretch it but unlikely.
Capital Gains Tax on sale of Property
just a follow up question:
is the tax rate slab also applicable for Long Term Capital Gain(LTCG) of immovable property like house, if the LTCG is the only income? In other words, if the LTCG is 10L (only source of income for the year) , can the basic deduction (1.6L for FY 2010-11) be done before paying the LTCG tax? ie pay 20% (LTCG tax rate) taxes on (10-1.6=8.4L).
is the tax rate slab also applicable for Long Term Capital Gain(LTCG) of immovable property like house, if the LTCG is the only income? In other words, if the LTCG is 10L (only source of income for the year) , can the basic deduction (1.6L for FY 2010-11) be done before paying the LTCG tax? ie pay 20% (LTCG tax rate) taxes on (10-1.6=8.4L).
Capital Gains Tax on sale of Property
Dear Guindian,
You can invest in Bonds to save taxes apart from purchasing a new house.
Dear tendlu,
Non-residents are NOT allowed to deduct basic deduction (1.8L for FY 2011-12) from the Long term capital gain, therefore tax shall be on the whole capital gains @ 20.6%.
Anuj
femaquery[at]gmail.com
You can invest in Bonds to save taxes apart from purchasing a new house.
Dear tendlu,
Non-residents are NOT allowed to deduct basic deduction (1.8L for FY 2011-12) from the Long term capital gain, therefore tax shall be on the whole capital gains @ 20.6%.
Anuj
femaquery[at]gmail.com
Capital Gains Tax on sale of Property
Its not clear if reinvestment must be in one or more peoperty. I had same situation in 2009, reinvested in two properties. www.REACTAX.COM in chennai filed my returns in 2010 .