Capital gains on plot sale

Mr A can buy a capital Gain-tax SAving Bond upto any amount i.e there is no limit of Rs. 50lac. he can buy even of 2.4cr.

to save tax, the only option left is to buy a capital gain bond as he had already bought one flat as he cannot buy more than one property otherwise whole amount will be taxable.

 and also first find out your Capital gain on the as per Indexation and then invest the amount accordingly.

Thaking You.

Sunny Bagla

Advocate

9810484999

sir but REC & NHAI has max limit of 50 lacs

can u provide me the link werein it states u can invest any amt in bond & there is a limit to buy jst 1 property

REC and NHAI has the  limit of Rs.50lac is for investment per year, and not exemption per year.

This is applicable, if your six-month limit falls in between two fiscal years. So if he manage to sell your property after October any year, you can actually double your tax benefit.

that way tax can be saved to some extent.....

property is sold in april 12,wats the alternative now? can u gv me link werein it states 2 proprties cant b bought

yes there is a limit to buy just one property

see sec 54 of income tax act

ok i will.thnks

Dear Jugal,

One clarification Is land is agriculture land?

The section under which you can claim exemption is 54F as the asset sold was a vacant land and invested in resi house property. Before going further, you have to ensure that the asset sold was a long term capital asset. More than one property will not be eligible for an exemption u/s 54F.

The exemption u/s 54EC is limited to 50 lakhs.