capital gains tax

I have sold a flat in June 2010 and it was registered in June 2010 (total amount 9.5 lacs & capital gains comes to around 5 lacs) (the property was in another city). I have not invested the amount in any house or property. Please let me know what is the capital gains on this. Should i have to invest the amount in a capital gains (savings account) before 31st March 2011 or I can invest before submitting the return.

This is the second property. I am currently staying in my own flat for last 8 years in bangalore.

Please give me the reply in detail about how to save the capital gain tax. Whether I should invest in a property before 31st march 2011 or I can put in a capital gains account.

asked Mar 12 '11 at 06:08 by kanth 1111


For computing capital gains, following figures are required: Purchase Year and Purchase Cost

In case you have kept flat with you for atleast three years, it will be considered long term capital gains.

In order to save income tax arising on long term capital gains, one can go with section 54 or 54EC.

Under section 54, a new residential property must be purchased within one year before sale and two years after sale of old flat. Or a new house can be constructed within three years of sale. To save income tax fully, new house price must be equal or more than capital gains amount. In case you are not decided about new property, then all capital gains will have to be invested into Capital gains saving account before income tax return filing for that financial year, in which sale of old flat happened. So you can invest in capital gain savings account before 31st July, 2011.

answered Mar 14 '11 at 04:05 by pankaj 5.2k320

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Asked: Mar 12 '11 at 06:08

Seen: 976 times

Last updated: Mar 14 '11 at 04:07