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Capital gains

Tax queries 339 views 1 replies

Dear Sir/Madam,

I sold recently two small plots in 2012-2013, and with one plot money i purchased a new flat. Thats how I avoided Capital Gains due to sell of first plot.

Now I want to avoid capital gains for the second plot i sold in this year.

I am planning to do some interior designing work for my new flat like wardrobes, kitchen furniture, new tiles (not from builder), new house electrical wires(not from builder) etc.... For all these I have to purchase from outside market.

Can I produce those bills (which are not purchased from builder, and I have to purchase from outside) to avoid capital gains which are due to sell of second plot.

Please advise.

 

Thanks,

RajaSekhar

 

Replies (1)

You cant utilize the Capital Gains arising on the sale of flats for the purpose of making furniture.  It needs to be invested by purchasing a house from the builder only.  You can invest the CG in the bonds of NHAI or REC with a lock-in of 3 years and then after redemption you can use the proceeds for the purpose of your house furniture.


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