13 February 2014
Dear Sirs, Grateful for a clarity on following situation.
a. 1982 - Bought a piece of land in Tamilnadu -for 1500 Rs in total. b. Jun 2013 - Sold the land for 2900000. Dec 2013 - Bought another pice of property/land for 1800000 c. Feb 2014 - Willing to Invest this after Indexation which amounts to 800000 Lakhs in Bank Capital Account for 3 or 5 years.
My questions are as follows.
1. I understand that we may need a NOC form Income Tax to withdraw the amount after Maturity. Would this be correct ? 2. Do we have to invest in capital account to avoid paying Tax ? Would we be exempted ?
13 February 2014
You have to invest in Bond as prescribed u/s 54EC and no need to take permission from the Income Tax Department. It is automatically on maturity you are sent with the payment. If you invest by making deposit in Capital Gain account with the bank for investment purpose then against the purchase of the property you can issue the cheque and withdraw the money.
14 February 2014
Thank You Mr.Agarwal...however are we eligible to invest in NHAI or REC now as 7 months has elapsed since sale of the land ? Thanks....Chandrika
17 February 2014
I really would be grateful for a guidance as to whether we can still invest in NHAI the remaining balance after purchasing a property with a sale proceeds of an earlier property even though 7 Months has elapsed since the sale...as of my above query posted on 13 Feb 2014
CAclubindia
