Required - capital gain tax solutions

Tax queries 428 views 2 replies

Hello Friends....

 

My frined's father sold a residendial property and got some capital gain tax of around Rs 10 lacs. Now he was advised to reinvest in a residencial flat or NHAI bonds to save capital gains.... when he discussed this with me I had few doubts as under:

 

1) If he invests in NHAI bonds for 3 years then after the maturity will he be again liable for capital gain tax on the capital gains or interest he will make ?

2) If he buys a residencial flat and sells it again after 3 years with a profit above indexsation will he be again liable to capital gain tax ?

3) Can he buy a house on a agriculture ladn along with the land to save capital gain tax ?

4) Can he buy agriculture land from his own source and then built a house on it with the money allocated to save capital gian tax ?

Any inputs and sharing of knowledge will be usefulll...

Thanks in Advance....

 

Replies (2)

Hii..

1) Yes, Capital gains and interest on investment in NHAI is taxable

2) Yes, capital is also taxable if he sells the residential flat.

3) Yes, he can the same.. But the exemption u/s 54 is limited upto the investment made in the residential house.

4) Yes, but again the exemption is limited to the cost of construction. Also, construction should be completed in 3 yrs.

@ Akanksha... thanks for sharing the information....


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