Tax on return from Acre/Pre launch scheme for plot

I have invested Rs 12.5 Lacs in August 2010 in Acre scheme (pre launch offer) . In this , developers offered 1/2 Acre developed land after 02 years or refund of Rs 20.5 Lacs. As developer could not acquire the required land so the scheme was not launched.I waited another 02 years but in vain. Developer is ready to refund Rs 20.5 Lacs as on today. I am a salaried employee in PSU & 30% income tax slab is applicable to me. I want to know following :-> (1) the difference amount of Rs 8 Lacs will be counted in Capital gain or not. (2) Indexation will applicable or not ? (3) What will be tax amount (4) How this tax can be saved ?

asked Nov 08 '14 at 21:29 by rajeev tripathi 11


It would be long term capital gain as the amount was invested for more than three years.

Long term gains would be only 2.5 lakhs not 8 lakhs because of indexation rule.

Tax amount would be 20% on gains, Rs 50,000 only.

If you want to save this tax fully, you have to invest whole sale consideration (20 lakhs) into house property (u/s 54F) or into capital gain bonds (u/s 54EC)

answered Nov 08 '14 at 23:30 by Pankaj Batra 5.2k320

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Asked: Nov 08 '14 at 21:29

Seen: 1,543 times

Last updated: Nov 08 '14 at 23:30