Capital gains tax on sale of land

Tax queries 7181 views 3 replies

PRADEEP SONI

Chief Manager

25 Points Joined September 2011

Dear Professionals,

My Father purchased a piece of land for Rs 5500 during 1984-85. After his death, the land has been sold for Rs 8,00,000.00 with date of agreement as 12.03.2013. At that point of time, I was not in position to invest the proceed for tax saving and deposited advance tax on 31.03.2013 of Rs 1,50,000.00.

Can I now invest the LTCG amount, so as to save the LTCG tax? If yes what would be the process and pLease suggest some instrument for above tax saving.

Thanks and Regards.

Pradeep Soni

Replies (3)

Giridhar S Karandikar

Team Lead

7558 Points Joined November 2011

Yes the CG arising on sale of land can be invested in bonds issued by REC/NHAI. As said by you the agmt is being made on 12th March so you have time till 11th sept to invest the CG in bonds.

However as your return filing date would be 31st July so the bonds need to be invested before31st Jul to save the CG tax.

However as you have already paid advance tax on the CG you will need to claim the refund