Long termCapital gains

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This discussion clarifies how to calculate Long Term Capital Gains (LTCG) on property sales, considering indexed costs and improvements. It advises reinvesting the entire sale proceeds into a new property or house to potentially avoid tax. It also addresses reinvestment in capital gains bonds, confirming only the interest is taxed and the 5-year lock-in period applies.

vijayakumar

vijayakumar (Querist)

15 September 2023 Respected sirs,
Thank you for sparing your precious time.Sir, I bought a plot in 2005 whose indexed value now is 85 Rs. The cost of improvements over time( indexed is )15 Rs. Now I have sold for 150 Rs. Thus I have a clear gain of LTCG 50 Rs. Now I have to buy a plot for 50 RS or for the entire 150 RS. Kindly guide me sir. Thanking you once again.
Kumar

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

16 September 2023 You have to buy a plot and construct a house/ buy a house for entire Rs 150

vijayakumar

vijayakumar (Querist)

16 September 2023 Thank you very much for sparring your valuable time sir🙏🙏

vijayakumar

vijayakumar (Querist)

16 September 2023 Respected sir,
if i buy capital gains bonds (5.25%) at the end of 5 years will they be taxed. i understand the interest is taxed, as per slab . i understand the lock in period is 5 yr. can it be closed before that .
thank you sir

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

17 September 2023 Only interest taxed. It can't be closed before that.

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