i received a share of my family property, one year ago. Now i want to sell the property.
The sale amount will be in 40 lakhs.
After sale If i purchase another property with half the money
Then rest of the money how can i utilize to avoid paying tax.?
8 Replies
Nidhi
(Chief Accountant)
(3150 Points)
Replied 03 February 2022
Is it commercial property or residential property ?
debora M
(BUSINESS DEVELOPMENT MANAGER)
(1697 Points)
Replied 03 February 2022
Long term Capital Gains on sale of real estate are taxed at 20%, plus a cess of 3%, if the sale fulfils certain conditions. If you sell a property that was gifted to you, or that you have inherited, you will still be liable to pay capital gains tax on it.
Shine
(Mechanical )
(215 Points)
Replied 03 February 2022
What if I use the sale amount to buy a property or construct a house?
Nidhi
(Chief Accountant)
(3150 Points)
Replied 04 February 2022
Than u can get exemption u/s 54F up to the amount utilised in same.
Shankar Rugge
(376 Points)
Replied 04 February 2022
But it is land and not residential property. So please check again
Gopinath MV
(Senior Analyst)
(50 Points)
Replied 04 February 2022
Section 54F of the IT Act allows an exemption on capital gain from sale of any property other than a residential house. This exemption is subject to certain conditions which are:
- Taxpayer should invest the net sale proceeds of the property in purchase of a new residential house.
- The new residential property must be purchased either 1 year before the sale or years after the sale of the property/asset Or the new residential house property must be constructed within 3 years of sale of the property
- Taxpayer should not own more than one residential house on the date of transfer, other than the one bought for claiming exemption under this section.
sabyasachi mukherjee
(27574 Points)
Replied 05 February 2022
You can avoid tax provided you follow Sec 54
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