mohit (18 Points)
15 June 2024Hi,
I have given my land for construction to a builder. After completing the construction I was handed over my share of flats in May 2024. I am 74 yrs old.
I understand I have to pay capital gains tax on it, but my question is do I need to pay full capital gains by 15 June 2024 or I can make part payment.
Please suggest.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(182250 Points)
Replied 15 June 2024
If you do not have any business activity, i.e any income u/h. PGBP, you are not liable to pay any advance tax.
Section 207 IT act gives relief from payment of Advance Tax to a Resident Senior Citizen.
mohit
(18 Points)
Replied 15 June 2024
Sir thank you very much for your help.
Sir I have income from pension, no business or any other income.
so do I need to pay advance tax.
please suggest.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(182250 Points)
Replied 15 June 2024
No. You are exempted from advance tax liability.
mohit
(18 Points)
Replied 15 June 2024
Sir didn’t got it.
Sir it means I have to pay advance tax or not.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(182250 Points)
Replied 15 June 2024
Simply, you are not required to pay advance tax.
sabyasachi mukherjee
(27603 Points)
Replied 15 June 2024
mohit
(18 Points)
Replied 16 June 2024
Hi there is one query about sec 54 EC :
Is this illustration correct or I am missing something.
| Particulars | Amount (Rs.) |
| sale consideration | 1 cr |
| Less: Indexed cost of acquisition | 46 lakh |
| Less: Indexed cost of improvement | 10 lakh |
| Net | 44 lakh |
| LTCG 20% | 8.8 Lakh |
| Investment under 54 EC |
8.8 lakh |
so Net Tax - NIL
PARAS CHHAJED
(CA Practice )
(1034 Points)
Replied 16 June 2024
You need to invest net long-term capital gain from the sale of Land / Building in Capital Gain Bonds to claim a deduction u/s 54EC. Thus, in the given case you need to invest Rs. 44 lacs. Investing Rs.8.8 lacs shall allow you a deduction u/s 54EC to the extent of Rs.8.80 lakh and the balance shall be liable to capital gain tax. It is the net taxable capital gain that has to be invested and not the tax. The investment in bonds is subject to a maximum of Rs.50 lacs in a year.
PARAS CHHAJED
(CA Practice )
(1034 Points)
Replied 16 June 2024
| Originally posted by : PARAS CHHAJED | ||
 |
You need to invest net long-term capital gain from the sale of Land / Building in Capital Gain Bonds to claim a deduction u/s 54EC. Thus, in the given case you need to invest Rs. 44 lacs. Investing Rs.8.8 lacs shall allow you a deduction u/s 54EC to the extent of Rs.8.80 lakh and the balance shall be liable to capital gain tax. It is the net taxable capital gain that has to be invested and not the tax. The investment in bonds is subject to a maximum of Rs.50 lacs in a year. |  |
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