Will LTCG tax applicable to me?

Dear Sir, We will be selling a old commercial shop owned equally now by 4 brothers for 1.50Cr,(this property was gifted by our father in 2006, purchased by our great grand father in 1924) my self and my elder brother will be investing in a house worth 1.51 Cr with a bank loan of 75L, my other two brothers will also buy flat for more than 75 lakhs. My question is will the LTCG tax applicable to me since i have a House and 6 small plots (sites only - purchased for investment purpose) Pl advice me ASAP! Thx, N A Mateen.

asked Aug 03 '11 at 00:49 by nadeemaj 1111


In order to save income tax on this long term gains, section 54F can be applicable.

In order to save tax fully, each one of you will have to invest in a new residential property for at-least 37.5 lacs (1.50/4 is your share of sale consideration). New property can be on joint names as well, but cost of one's share must be more than 37.5 lacs.

Section 54F has some condition for applicability. These should be followed:

  1. Possession of new flat must be taken within two years from sale of plot.
  2. Person should not be owning more than one residential house(flat/house/apartment) at the time of buying new flat.
  3. If total residential houses owned by person is two (including new flat), he should not buy another one within next three years of purchase. Or in next three years, total owned residential houses should not be more than two.
  4. New flat should not be sold before next three years.

answered Aug 03 '11 at 20:45 by pankaj 5.2k320

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Asked: Aug 03 '11 at 00:49

Seen: 1,204 times

Last updated: Aug 03 '11 at 20:45