Dear Sir/Madam,
An individual owns two lands. One land is inherited and other land is purchased 10 years ago. If he wants to transfers any one land. What will be tax implication and how can be exemption be claimed?
4 Replies
Mehul Bhanushali
(CA in Practice)
(174 Points)
Replied 01 January 2019
Long Term Capital Gains will be attracted in this case.
There are two ways to claims exemption to avoid paying taxes:
1) Invest in Rural Electrification Bonda / NHAI Bonds but you cannot invest more than Rs. 50 Lakhs so if your LTCG is below or upto Rs. 50 Lakhs you can opt for this option. Exemption will be available u/s 54EC. Note that you need to invest within 6months from the Date of Transfer of your Land.
2) You can invest in residential house and claim exemption u/s 54F.
mohit agrawal
(Tax Consultant)
(123 Points)
Replied 01 January 2019
If he invest in residential house and in future if he wants to sale another land also.In that case what will be tax implication?
umesh kumar sidana
(ca)
(143 Points)
Replied 01 January 2019
when they will sale another land also, capital gain will calculate again & this exemption continues.
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