Tax on receiving 20 lacs in bank account

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 January 2014 Dear Friends,

I am going to sell an old house in rupees 20 lacs. We bought it in 4100 in 1977. And as per of CII, the capital gain going to be 19.5 lacs.

Need some help on receiving this money (not in cash) through bank without paying any tax, safely.

Please suggest some options how to do it? I cant take cash, its too risky to carry this much of money.

Thanks

AVTAR SINGH

AVTAR SINGH (Expert)

17 January 2014 First of all, I would suggest you not to talk of cash or any other mode to hide income. This platform is to ask queries relating to provisions of income tax so that you can plan how you can minimise your tax within the framework of the Act.
Now coming to your query, you can get exemption from capital gain by investing capital gain in new house or by investing in eligible bonds.

Querist : Anonymous

Querist : Anonymous (Querist)

17 January 2014 Ok.
But do you think, if i take this amount in my bank account directly then go and buy the new house. Then, I dont have to pay any tax?

AVTAR SINGH

AVTAR SINGH (Expert)

17 January 2014 You can buy a house by investing the full amount of capital gain. You must take this amount in your bank and then only buy a house. The condition is to invest money and not necessarily the same money.

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