Sale of land - impact of capital gains tax


I sold a piece of land, which was earlier transferred to me vide Gift Deed by my father in the year 1999 (market value mentioned Rs 2.50lacs in the Gift deed). The land was sold in June 2010 for Rs 9 lacs as per Sale Deed. I have invested in an apartment in February 2010 valued Rs 20 lacs which is under construction and will be ready in February 2012. The amount received from sale of land has been invested in this apartment so far. I have also taken a Housing loan from ICICI which is in joint name (my husband and me). How is tax amount calculated in this case? Is Sec 45 applicable to me since I have entered into a sale agreement for apartment 4 months before sale of land? Please advise.

Rgds, Anita

asked Mar 11 '11 at 11:53 by arvindakamath 1111

You will be able to save income tax under section 54F, as you have bought a residential apartment within time-frame of one year before sale and two years after sale of old property.

answered Mar 11 '11 at 15:24 by Pankaj Batra 5.2k320


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Asked: Mar 11 '11 at 11:53

Seen: 2,377 times

Last updated: Mar 11 '11 at 15:24