Taxes on Sale of Land

Dear Sir,

I am an NRI selling my own land in Indian state of Kerala for 24 Lakhs(24 cents). Please advice if this income would be taxable and what should I do to reduce my taxable income if any.

Can I use this fund for any other investment in future soon.

Thanks & regards Thomas

asked Jan 31 '12 at 13:07 by Thomas 111

If land has been owned on by you more than three years, the gains from sale would be considered long term gains.

Income tax is payable on gains (computed with indexation rules) at rate of 20%.

If you want to save this income tax fully, you can invest whole sale consideration into a residential house property u/s 54F or invest into capital gain bonds u/s 54EC.

answered Feb 10 '12 at 13:24 by Pankaj Batra 5.2k320


Know someone who can answer? Share a link to this question via Email, Twitter, or Facebook

Your answer
toggle preview

Follow this question

Once you sign in you will be able to subscribe for any updates here

Markdown Basics

  • *italic* or __italic__
  • **bold** or __bold__
  • link:[text]( "title")
  • image?![alt text](/path/img.jpg "title")
  • numbered list: 1. Foo 2. Bar
  • to add a line break simply add two spaces to where you would like the new line to be.
  • basic HTML tags are also supported



Asked: Jan 31 '12 at 13:07

Seen: 1,537 times

Last updated: Feb 10 '12 at 13:24