My father just sold a shop on ground floor which is a corner of my house. The same property is not purchased by my father but he received that from his grandmother in will.
I want to know is there any exemption that he can claim whether by investing such amount or by any other mode to get rational tax benefits. What happen to exemption if he just invest some portion of consideration recieved not whole to get tax benefit.
Yes, first arrive at LTCG by indexation of the property from its market value as on 01.04.2001.
Invest that long term capital gains (max. upto 50 lakhs) in Sec. 54EC capital gains bonds of NHAI or REC or PFC, for exemption from LTCG/tax.
CAclubindia
