is this the correct way to save tax on long term capital gain on property

iocsachin 1
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I was having a property (plot/land)which i sold in March 2011 after 30 years of purchase. Also, i invested in a property in the name of my wife (dependent on me) during 2009 in a construction linked apartment.

i am interested in saving the income tax on the longterm capital gain incurred due to the sale of the plot. Can i get a income tax rebate on the amount which has been paid by me to the builder as a part of construction linked payment. if not, how i can save the tax. i don't want to purchase another property

Sachin

residential-land long-term-gains capital-gains ltcg income-tax
1 Answers

You will be able to take income tax benefit under section 54F, but if all following conditions are satisfied:

  1. New property should be residential (flat/house/apartment).
  2. If full income tax needs to be saved, new property cost must be more than sale consideration of plot.
  3. New property has to be in name of person, who is liable to pay income tax (in whose name the earlier property was).
  4. Possession and registration for new property must be done before end of two years from sale of plot.
  5. You should not own more than one residential property at the time of buying new property.
  6. New property cannot be sold before three years.
  7. A new residential property cannot be bought in next three years.
  8. Sale consideration of plot should be deposited in a capital gain account scheme and payment to builder should be done from there only.
Pankaj Batra5212
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