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Tax queries

neerav (audit) (25 Points)

27 August 2012

I HAVE SOLD PROPERTY THIS YEAR WHICH WAS PURCHASED BACK 19 YRS.

SO I WANTED TO KNOW HOW CAN I SAVE MY CAPITAL GAINS TAX... WHERE CAN I INVEST THE SAME AND SAVE IT. PLS LEMME KNOW.

THANKS

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5 Replies

Mitesh Soni (CA Final Student) (83 Points)
Replied 27 August 2012

Sirjee Invest in 54 EC....

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neerav (audit) (25 Points)
Replied 27 August 2012

"54EC" Is that only OPTION or is ther any other way out for saving tax by investing in other instruments.. PLS GUIDE.

THNKS

Mitesh Soni (CA Final Student) (83 Points)
Replied 27 August 2012

U can save tax by Either of the following :-

Buy a new property

Open a CGAS Account - keep ur Capital gain amount in a Govt bank Special CGAS a/c till the time u find a new house & then withdraw when u actually buy a new house

Invest in 54EC bonds - Most Practical

Nitesh Matta (Nothing) (198 Points)
Replied 27 August 2012

reinvest in house to get tax exempted under section 54 or 54ec is good option.

CA Daksh Dawar (Chartered accountant ) (80 Points)
Replied 28 August 2012

Mr. Neerav

You have the following options:

1. Get REC or NHAI Bonds u/s 54EC within 6 months from the date of transfer fo property.

2. If the property sold is a residential property than invest the capital gain amount in a new residential property within two years or construct a new residential house within 3 yrs , how ever if the property sold today is not a residential property than invest the net consideration in a residential house.

3. Open a Capital gain saving account in a nationalised bank and deposit the capital gain amount in the same before the filing the income tax return and later invest the amount within three years into some residential house.

for futher details on any of the above option , plz continue the conversation..