Capital Gains`

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Querist : Anonymous

Querist : Anonymous (Querist)

30 July 2010 sir,
my father have sold land in durg in CG this year . for Rs 10 lakhs. my father age is around 60 and above . i would like know , where should i invest this amount of money so that there will less capital gains and this land was of my Grand father .

Roopesh.V.Naik

Roopesh.V.Naik (Expert)
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30 July 2010 Dear Friend

Total Sale Consideration Rs.10 Lakh

You have to reduce ICOA from Sale consideration.say 1 Lakh . Fathers age < 65 years, Basic exemption limit Rs.1.6 Lakh( Provided ur father have no other Income) Net Capital gain comes to Rs. 7.4 Lakh. Section 54EC you can invest in bonds issued by NHAI and REC within 6 months from the date of transfer. You have to hold that investments without converting it for a period of 3 years.

Querist : Anonymous

Querist : Anonymous (Querist)

31 July 2010 Thank Your sir. but my dad income from rent is also there around 1 lakh. he filed his return regularly . if we invest in mutual fund and post office or land . can we get rebtea in that.

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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02 August 2010 Since your father acquired the land from your grandfather hence the property belongs to his HUF.

Create an HUF of your father.

For better tax planning and more income on the investment; consult a good practising CA.

Not only tax savings would be there but you will gain more than FDs or Post Office savings.

You would also be able to use the funds as and when required.

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