I sold a small flat for Rs 20 lakhs with capital gain of Rs. 12 Lakhs.
Can I buy a residential plot on unapporved colony an built a home later(Registry for agricultural Land) and basic amenities like electricity, water and road is available 50% populated.
I want to claim exemption from capital gain....Pls suggest..
26 November 2014
Construction of Residential house Property within a period of 3 years from the date of sale on the residential plot for 12 lakhs will exempt you from capital gain.
To avail tax benefit, the capital gains should be re-invested in a residential property before filing income tax return for that year. If you are unable to find the right property or invest that money in another property before the due date (usually 31st July) of filing your tax return, then the unutilized sale proceeds can be deposited into Capital Gains Account Scheme (CGAS). Taxpayers can avail exemptions under the CGAS only when the amount of capital gain, or net consideration, is deposited by the last date for filing the income tax return.
Deposit Account Type A: All deposits into this account are in the form of savings. This account is suitable for taxpayers who want to construct a house over a long period as withdrawals are permitted according to the provisions of the scheme.
1) Is it OK to buy an agricultural land (within 8 KM from Municipal Corporation of Gurgaon)to construct a residential house?
2) In case of unauthorized colony how will I prove that I have completed construction after 3 years?
3) If cost of land is less than 12 Lakh then Can I invest unutilized money to NHAI,REC etc bond or I have to deposit in CGAS only before 31st July 2015.
27 November 2014
Yes You can buy that agricultural land up to Rs 8 lakhs. The balance amount being capital gain of Rs 12 lakhs invest as given below.
LTCG can be claimed as exempt in case the gains are invested in bonds of National Highways Authority of India and Rural Electrification Corporation within six months from the date of transfer.
Wait for approval of that area get the above investment matured and construct the house.
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