Dear Friends,
I am writing with a lot of hope.
I bought a flat in Mumbai whose inflation adjusted value today is Rs. 7 lakhs.
I am selling the flat for Rs. 20 lakhs to a close relative.
The ready reckoner value for the flat is Rs. 35 lakhs.
I do not intend to reinvest the proceeds in another property and hence investing the entire 20 lakhs in the property capital gains tax saving bonds of NHAI/REI issued by the government of India. However that will still leave me with a capital gains liability on the remaining 8 lakhs (35 lakhs -7 lakhs -20 lakhs). Can I invest further 8 lakhs from my existing savings and by borrowing from friends into the NHAI/REI bonds to save on the capital gains?
Thanks