Reinvestment in property

Dear Pankaj, My father has bought a plot measuring 36,000 Sq. ft in my name in 1993 for Ninety seven thaousand. I sold that plot in October 2011 for an amount of Rs. Thirteen Lacs & Fifty Nine thousand and deposited the amount in normal saving acount.. I am salried professional. The employer had already deducted TDS which worked out to 2,06,200/- (From March 2011 to Fen 2012)) from my salries for the Fy 2011-2012. I have a flat in joint name of my wife. I wanted to purchase a property/falt but could not found a suiatable one in this financial year but still intend to purchase one. My question is a) If the amount gained from sale of plot is taxable if I intend to invest the proprty. b) Weather I have to show the income recived from sell of said plot in my return. c) Whether the amount received from sale of plot can be deposited in normal saving acount. Please reply asap. Thanks and regards. Haseeb

asked Mar 28 '12 at 14:57 by Haseeb 1112

You can save income tax on gains earned from sale of plot by investing into residential house property u/s 54F or by investing into capital gain bonds u/s 54EC.

To save tax fully, you would need to reinvest whole sale consideration amount (13.59 lakh).

As per section 54F, you must get possession of new residential property before end of two years from dale of sale. if such possession is not received before 31st July 2012 (last date of income tax return filing), you would need to invest whole sale consideration amount into capital gain account scheme. Payment to seller/builder of new property can be done from this account.

As per section 54EC, if you want to save tax by investing into capital gain bonds, it has to be done before end of six months from date of sale.

answered Mar 28 '12 at 16:14 by Pankaj Batra 5.2k320


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Asked: Mar 28 '12 at 14:57

Seen: 2,621 times

Last updated: Mar 28 '12 at 16:14