IT under capital gain

Querist : Anonymous (Querist)
27 February 2010
We have a piece of plot owned through inheritance from Great Grandfather. The present plot was tranferred in the name of my father in 1994.Now we like to dispose the plot , at the same time seek to be benefitted under the capital gain tax. Kindly advise in context of the following :-
(1) Can I show the sale realisation to close home loan already running in my name; the logic being that the realisation has come from ancestrol property and I being the inheritor of the family stand to have my share out of the ancestrol property. Also , if any tax possibility under capital gain can be used to nullify home loan prior to gain under capital gain
(2) If not (1) above, then apart from investing the sale proceeds into another house what other option could be there to nullify the tax under capital gain
(3) It is to be mentioned that the govt rate will be Rs 220.00 per sq ft and sale deed shall be on the same value.

Querist : Anonymous (Querist)
27 February 2010
Please advise

CA. Ashish Bihani (Expert)
07 April 2010
1. It wont give any benefit. Also if the property sold is in name of your father, investment is to be made in his name only.

2.If the plot is agricultural one, you may buy another agri plot or invest into capital gain bonds.

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