LONG TERM GAIN

I AM OWNER OF 1/3 RD OF A FLAT AND HAVING A LAND 2 COTTAH. NOW I AM SELLING THIS LAND AND LONG TERM INCOME IS 5.00 LAC. CAN I BUY ANOTHER OR CONSTRUCT FOR SAVING THE LONG TERM GAN TAX.

SUNIL

asked Mar 07 '11 at 07:45 by khaitan 1111


As you are selling a plot, section 54F and 54EC can be used to save income tax arising on long term gains.

As per section 54F, you will have to buy another residential property within 2 years of sale of plot or construct a house within three years of sale. Buying price of new property must be more than sale price of plot, in order to save income tax fully. But there is condition that at the time of buying new property, you should not be owner of more than one property.

answered Mar 10 '11 at 11:25 by pankaj 5.2k320

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As per section 54, you can buy or construct property in 2 years after sell of property for the amount euual to ther profit or gain so that you need not pay any Long Term Capital Gain Tax. Otherwise you may have to pay LTCG tax on the profit you earned. Thanks Ashok

answered Mar 09 '11 at 05:53 by ashok 1111

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Asked: Mar 07 '11 at 07:45

Seen: 1,367 times

Last updated: Mar 10 '11 at 11:25