Capital Gain on Sale of Property or How deduction will be applicable

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This discussion explores how to manage capital gains tax when selling a property for a profit. The user is considering buying a new flat under construction and wants to know if the initial payment and subsequent installments can be used to offset the capital gains tax. Suggestions include depositing funds into a Capital Gains Savings account to claim deductions under Section 54 of the IT Act.

PRAVIN RANE

PRAVIN RANE (Querist)
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15 November 2021 Dear All,

Kindly Suggest me on my below Query.

If Someone Sale his own property with profit of Rs 40,00,000/- (As per Long Term Capital Gain).

He is Interest to Book New flat value of Rs 1 CR but in Construction. Building will ready within next 3 years. So he will pay Flat amount Installment wise or slab wise which builder provided.

But Builder only ask for Rs 10,00,000/- and pay after remaining as slab wise.

So Earn Rs 40,00,000 - Rs 10,00,000/- (1st Installment) = Remaning Rs 30,00,000/- is taxable or not, or if he is interest to Save that amount in Saving bank. what will happened.

Kindly Suggest me what He want to do for saving tax.

Your Suggestion will really helpful for me

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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15 November 2021 The remaining amount he should deposit into Capital Gain Savings account, 1988 scheme; for payment to builder as per slab. So that the total 40 lakhs becomes deductible u/s. 54 of IT act.

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PRAVIN RANE

PRAVIN RANE (Querist)
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15 November 2021 Thank U So Much Sir

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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16 November 2021 Most Welcome ..

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