capital gains

This query is : Resolved

prasath (Querist)
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08 August 2010 Dear Friends,
How should i reduce the tax liability in the following case
Status : HUF
Long Term Capital Asset : Land
The person wants to sell the land.
How the tax liability can be reduced.

Guest

Guest (Expert)

08 August 2010 following options are available to save tax by investing the amount received thru the sale of asset.

u/s. 54 E - within six month, amount equal to the net consideration received shall be invested in specified asset (Specified Asset for investment are Security of Central Govt., Units of UTI, Bonds of NABARD, debentures of HUDCL)

u/s. 54 EC - within six month, amount equal
to capital gain shall be invested in long term specified asset (not being more that 50 lacs) (specified asset for invstment is bond issued by NHAI or bond of RECL)

u/s. 54 F - If you don’t own residential house, then amount equal to the net consideration can be invested in buying residential house within 1 year before or 2 year after the sale of asset.

you shall go thru the capital gain chapter of income tax act where you will find above sections in details.

still if you need further clarification you can ask.

regards