Capital gain on property sale

Sir, namaste,I have sold my plot in year 2009, September and earned capital gain of Rs 75L.I have saved 50L in capital gain bond of NHAI and deposited 25L in capital gain account of SBI thinking I will invest in property,flat. Now I have dropped the idea to buy the flat. Please tell me Sir, 1- How much tax I have to pay now on this 25L?
2.How much more time I can keep amount in capital gain account,already 2 year is getting over on 19th sept 2011? dinesh

asked Sep 05 '11 at 13:34 by taxation 1111


As you sold a plot, section 54F and 54EC can be used to save income tax. But in both these sections, whole sale consideration of plot needs to be invested to save tax fully.

You have already invested 50L in capital gain bonds under section 54EC to save tax.

Now you will have to pay 20% income tax on following amount = Long term gains - ( Long term gains *( 50 lacs/total sale consideration))

e.g. lets say if total sale consideration of plot was 1 crore, then 20% income tax will be payable on 75 - (75 * 50/100) = 37.5 lacs.

You can keep amount invested in capital gain account for max 3 years.

answered Sep 05 '11 at 14:09 by pankaj 5.2k320

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Asked: Sep 05 '11 at 13:34

Seen: 1,295 times

Last updated: Sep 05 '11 at 14:09