Capital Gain Tax

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rajat (Querist)
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21 April 2010 I want to know that:-

1 I have sold a property i want to save Capital Gains .So i want to invest in CG Bonds please tell me i have to invest whole of the amount we get Or only Capital Gain arries after indexation.

2 What Capital Gain bonds are avilable and what is the minimum time to stay invested in CG Bonds to save Capital Gain Tax.

3 What is rate of interest in CG bond and is it tax free?

Thanks in advance

VIKAS AGGARWAL

VIKAS AGGARWAL (Expert)
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21 April 2010 dear rajat,

you need to invest whole of capital gain to save tax on long term capital gain. You will have to hold these bonds for three year from the date of purchase.However the total investment should not increase 50lacs rupees.

Please note that investment can be made in bonds issued by National Highways Authority of India or by Rural Electrification Corporation Limited.

rajat

rajat (Querist)
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22 April 2010 sir i want to know that i have to invest whole of the amount we get let say 25 lacs or only the capital gain that arries let say rs 15 lacs.

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Aditya Maheshwari

Aditya Maheshwari (Expert)
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01 May 2010 Capital gains after indexation i. e. 15 lakhs

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taxindiaconnect

taxindiaconnect (Expert)
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04 May 2010 Capital gain is the amount which is taxable in the hands of the assessee, so capital gain after indexation would be the amount to be invested.