Capital gains

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 May 2013 I am planning to sell my land & building in Chennai for the purpose of higher education of my son. Please advise me of the possible deductions/taxes I need to suffer out of the Sale consideration. The guideline value of the property is much higher than the amount required for the education; understandably the amount utilised for education will suffer tax. Please also advise me the steps to legally avoid/reduce the CG.
Thank you for your kind reply.

TKKKKKK

TKKKKKK (Expert)

17 May 2013 You have to bear the capital gain tax. sale consideration less indexed purchase price. if asset is long term. you are investing money in education of your son. but if you invest it in residential house or bonds. you can get deduction u/s 54f or 54ec.

Ganeshbabu K

Ganeshbabu K (Expert)

17 May 2013 WHAT IMMOVABLE PROPERTY YOU ARE SELLING..

YOU COULD HAVE MENTION IT

IF YOU ARE SELLING AGRICULTURE LAND ,..

WHICH IS SITUATED IN THE RURAL AREA IS NOT COVERED IN THE DEFINITION OF CAPITAL ASSET AND HENCE QUESTION OF CAPITAL GAIN WILL NOT ARISE.

REFER SEC 2 (14)(iii)
REFER NOTIFICATION 9447 IN 1994 YEAR

Ganeshbabu K

Ganeshbabu K (Expert)

17 May 2013 If your immovable property is building&land u can follow sugggestions of tarannum khatri,

Guest

Guest (Expert)

19 May 2013 CA Taranum advice is correct, you can invest the capital gain in accordance with the section 54/54f/54ec/54ea

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