Capital gains

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Ram (Querist)
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20 February 2012 My brother –in-law has sold a plot for Rs.12.00 Lakhs in May 2011. He also owns a house. He is a retiree since 6 years. He wants to know what is the capital gains tax he has to pay and also how much time he has to buy a new property from the above Rs.12.00 Lakhs.
Ram

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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20 February 2012 If he purchases another residential house costing 12 lakh or more he will not be liable for capital gains tax.
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He can purchase a house within 2 years after or within one year before the sale of the plot. He can construct a house within 3 years from the date of sale.
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He has to keep his unutilised money in a Capital Gains Savings Account in any of the Scheduled Banks before 31.07.2012.
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For the purpose of Calculating Capital Gains , date of Purchase and Cost+Registration Charges details are required.

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