Stcg on sale of residential flat: any way out?

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yashsr (Querist)
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24 June 2012 Hello,

I purchased a residential flat in 2010. I want to sell it now. Hence, the nature of capital gain will be short term. Because of this, I'll be taxed @ 30%(my tax slab). I'll get no indexation benefit. Plus I will not be able to take advantage of 54, 54EC or 54F.

Now, is there a way out for me to avoid being subject to this huge capital gains tax? Is there any other exemption which can be claimed even for Short Term Capital Gains from Sec 54 to 54H or whatever? Any other suggestion to reduce tax liability?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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24 June 2012 The best suggestion is do not sell it right now. Keep it for complete 3 years.
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yashsr

yashsr (Querist)
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24 June 2012 Yes but apart from that?

SHILPA

SHILPA (Expert)
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27 June 2012 YOU CAN PURCHASE BONDS OF rec and NHAI UNDER SECTION 54E

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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27 June 2012 Bonds can be purchased but that is of no use for exemption as the capital gain is short term. Bonds will help only when the case is of LTCG.

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