Capitol gain from sale of residentail plots

This query is : Resolved

gopinath (Querist)
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17 August 2018 dear sir/madame
i am retired senior ctzn paying INCOME TAX regularly
presently i am trying to sell residential land property
i want to be clear on the applicability of LTCG tax in my specific case
now my background for review re this matter
1 i own one residential flat purchased in 1975 mumbai, from my self earned funds which i have declared as self occupied and continue to do so
2 i inherited a family residential house property bangalore in 1996 for which i am only the present custodian (khartha) and i pay taxes towards the income earned by letting it out thru my individual IT returns. (not filing any HUF returns etc as we were not allowed to form HUF at that time or so as i was vaguely told.)
only my wife and two children will be eligible for share in this property after me .
3 i purchased three residential plots out of my self earned funds in 2000 original value around rs 5 lakhs all three.today's expected value around rs 25*2+30*1=rs 80 lakhs.
these three plots i want to sell and before that i want to be clear on capitol gain tax as applicable in my case

questions needing your expert comments
re LTCG say rs 75 lakhs (tax@ 20%) leave indexation for the moment , arising out of sale of these plots
1 can i save the IT on LTCG by investing in purchase of residential plots elsewhere or can buy a house/flat instead
in the article of tax department article ,
under item d) conditions to be satisfied, it says i should not own more than one residential house at that point of sale ,
here as the second one is inherited and is a family property, will it be counted as my individual second house as i am filing return as individual ITR 2
fundamentally seeing if i am eligible for capitol gain exempt in my specific case
can i or not get the benefit of irenvesting sale proceeds in buying another property
this is the first attempt to go around the issue, could refine further as it crystallizes
i await your experts comments

2 any other option to save the tax on LTCG in my case if 1 is allowed
thanking you in anticipation

Regards
Gopinath

ALKESH T MEHTA

ALKESH T MEHTA (Expert)
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17 August 2018 1.Better,you try to sell your house property in Mumbai & construct within two years on your one of the residential plot ,one residential house.
2.Be in touch with tax consultant to create H.U.F. for your inherited property,that will be beneficial for your legal heirs too in future.