Dear sir, My mother aged 79 got 22 lac as consideration of property(old) sold in November 2010. We wish to save tax u/s 54EC , since it is long term gain . How can we save the tax . We are more interested 1)in purchasing property or- Till what period we can prolong the purchase 2)purchase infra structure bond.-Till what period we can postpone the purchase of Bonds. Can we purchase vacant plot instead of New Property equivalent to the consideration or more.
1 Answers
Property has to be purchased within 2 years of sale of old property or a new house has to be constructed within three years of sale.
Capital gain bonds have to be purchased within six months of sale.
You can purchase a residential plot but construction will have to be done within three years on same.
Related