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Dear Sri Pankaj. I am have taken one flat in 2004 for which paying EMI Rs.8000/month.Book another flat in 2011 on bank loan for which emi will start from Jan 2013. I want to sell on piece of land for 5 lakh purchased in may 1993 for Rs.one lakh.Is there any way to save the income tax under above circumstance.
Looking forward for your suitable advise.
yours sincerely
sanjay
You can save income tax arising from sale of residential land under section 54F. Under this section, you have to buy an residential property within time frame of one year before and two years after sale of plot.
As you have already bought a flat in 2011, this can help you in saving income tax. But you must receive possession for this before end of two years from sale of plot.
But there is one condition under this section that you cannot own more than one property at the time of buying of exempted one. As you already own one flat bought in 2004 and one bought in 2011, this makes it two properties. If you own any other property other than these (apart from land which you will be selling), then income tax exemption cannot be availed.
