Capital gain

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Querist : Anonymous

Querist : Anonymous (Querist)

21 December 2012 One of my friend had sold a plot for around 40 Lacs and is having a long term capital gain of 28 Lacs. Right now he has no plan to purchase a new house but in future, say in a span of two years he would be planning to do so.

Till then where could be the sale proceeds be invested so as to plan no tax on capital gains. Sec 54 of the I.T.Act has something in it but we don't know the exact thing. Expert advises are sought on the matter.

Amol S Joglekar

Amol S Joglekar (Expert)
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21 December 2012 Before the due date of filing the return, go to any nationalised bank and ask for opening "capital gain account" It is like a savings bank account. Deposit the money. Show this proof in the return to be filed.

Querist : Anonymous

Querist : Anonymous (Querist)

21 December 2012 Thanks Sir. Is there any other thing like bonds or such where this money can be deposited. Secondly I wish to know that whether the total sale proceeds is to be deposited or only the capital gain amount is to be deposited. Please advice.

Amol S Joglekar

Amol S Joglekar (Expert)
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21 December 2012 For investment in new house property, CAPITAL GAIN needs to be invested. For bond investment, you will carry the proportionate deduction...to Full value of consideration.

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