Income tax on sale of land

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This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

24 April 2016 Dear Sir/ Madam,

I am Retired Govt School Teacher age 75.
I own on house on my name.

I bought a non-NA & lay-out plot on 100 rupees bond 15 year back for 1,50,000.
Today its value is 25,00,000.

Now I wish to sell it for Rs.25,00,000 & wish to buy one used recently constructed
home for 38,00,000

In these TWO transaction I would like to avoid INCOME TAX or Tax Compliance.

Advise me how to make a deal to avoid it.

Thanking you

CA Kumar Mukesh

CA Kumar Mukesh (Expert)

24 April 2016 You may claim deduction from long term capital under section 54F... For purchase of residential house out of long term capital gain arising from capital asset other then residential property... But for claiming this deduction you must not have any residential in your name at the time of purchase of residential property... If you already have residential house.. Then you need to pay taxes on long term capital gain

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