Claiming exemptn. of long term cap.gains tax u/s 54ec+54f

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Kapil Tiwari (Querist)
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24 October 2012 A vacant plot of land was sold for a net sale consideration of Rs.1,10,36,000/-. The fair market value, after indexation, of the land, as on 01/04/1981, was Rs.19,39,091/-. Hence, Long Term Capital Gain was Rs.90,96,909/-.

The following are the investments made and proposed to be made for claiming tax exemption:
1)Rs.50,00,000 in NHAI plus REC bonds for exemption u/s 54EC(now, investment already made),
2)Rs.60,36,000 in a residential property for exemption u/s 54F(proposed to be made)

Please advise:
a)computation of the total tax exemptions that can be availed,
b)total Long Term Capital Gains Tax payable after considering the exemptions.

Anand Modi

Anand Modi (Expert)
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24 October 2012 For Investment in NHAI & REC you would get full deduction and for 54F see below

90,96,909/1,10,36,000*100 = 82.4294%

Hence Amt to be invested =
6036000* 82.4294% = 49,75,439.

Total Amount of Exemption = 4575439+5000000
= 95,75,439
Hence Long Term Cap. Gain is NIL

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Kapil Tiwari

Kapil Tiwari (Querist)
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24 October 2012 Dear Arvindji,
Total Amount of Exemption = 4975439+5000000
=99,75,439.
I think 95,75,439 is a typographical error. Kindly advise.

However, Long Term Capital Gains Tax will still be nil. Kindly clarify.

Kind Regards/Kapil Tiwari