16 January 2016
I PURCHASED A SHOP FOR RS 16,00,000/- AND SOLD IT FOR RS 20,00,000/- .THE TIME DIFFERENCE BETWEEN MY PURCHASE AND SALE IS LESS THAN ONE YEAR. HOW CAN I REDUCE MY TAXABLE INCOME ( FOR EXAMPLE : FROM INVESTING IN WHICH GOVT BONDS WOULD BE BENEFICIAL) . OR PLEASE GUIDE ME WITH OTHER MEASURES IF ANY.THANK YOU.
16 January 2016
THIS CASE IS OF SHORT TERM CAPITAL GAINS. . IN CASE OF SHORT TERM CAPITAL GAINS YOU CAN SAVE TAX UPTO A CERTAIN EXTENT BY UTILISING THE LIMITS PRESCRIBED UNDER CHAPTER VIA- DEDUCTIONS -LIKE LIP, PPF, MEDI-CLAIM, DONATION ETC. . EXEMPTION AGAINST LONG TERM CAPITAL GAINS ONLY IS AVAILABLE BY INVESTMENT IN THE BONDS OF NHAI & REC U/S 54EC.
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