Judicious utilisation of LTCG

Dear Pankajji, I own a flat at Lucknow jointly with my wife. Besides I am second second applicant of a flat at Noida(My son being first applicant) and the promotors have indicated that possession of the flat would be handed over in June 2013.Rs 5.19 Lacs is payable to them on possession besides registration charges. I have availed loan of Rs 7 lacs from bank against My Fixed deposits in the month of June 2012 and have paid to the promotors.I have also availed loan of Rs 3.5 lacs from my wife(She is an income tax payer)in the month of Sep 2012 and additional Rs 3 Lacs from her in March 2013. I want to sell some agricultural land which is within 8 KM from municipal limits, and to make final payments to the promotors, and to repay the loan to my wife as well as bank. Please advise me whether the above three mode of payments arising from sale proceeds of agricultural land are exemptd from IN in respect of LTCG? Regards, G K Mishra, [email protected] Lucknow

asked Sep 24 '12 at 17:02 by girindra 113


As you are getting possession of a residential house property within two years of sale of agricultural property, you can avail tax benefit u/s 54F.

You should not be owning more than one residential house properties in your name (single or jointly owned) at the time of selling land. As per details provided by you, as of now you only own a flat with your wife, so you should be eligible.

Make sure possession of Noida flat is received before 31st July 2013 in case you sell land in FY 2012-13. If its not done by that you will have to open capital gain scheme account and deposit sale consideration of land into that.

Also, in next three years, total residential house properties owned by you should not be more than two. For zero income tax, your share in new Noida flat cost should be more than sale consideration of land.

answered Sep 24 '12 at 17:56 by Pankaj Batra 5.2k320

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Asked: Sep 24 '12 at 17:02

Seen: 1,623 times

Last updated: Sep 24 '12 at 17:56