Tax on Sale of LAND & further Investment of the Money in Stocks

This query is : Resolved

gk (Querist)
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05 August 2021 Dear Peers, Pranam!

Regarding a Property (Land) Sale in Coimbatore District.

In the last year (October 2020) I have been sold a land and gained (with ref. to the value recorded on the deeds) more than fifteen lakhs rupees. I have not been bought any other land/property with that amount But invested part of the amount for buying of stocks/shares. It has been told by one of my friends that I coan not invest this money in stock market and I should have property gain tax to be paid to the ITD in this financial year. Please let me know how much amount I should paid (or the percentage of gain as tax) and whether I have any issues for investing that amount in stock market as I mentioned above.

Please guide me if I have been misguided on this regard.

Thanking you,

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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05 August 2021 Is it a plot or rural agricultural land.
Is it held for more than 2 years.
20% tax payable on capital gains in case of plot held for more than 2 years.
Balance 80% of capital gains and cost of the sale value you can invest in stock market.

gk (Querist)
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06 August 2021 Thank you Sir for the clarifications,
its a plot and bought in 2008/2009. So the tax is 20% of fifteen lakhs, means rupees three lakhs to be paid. It should be paid this financial year i.e. 2021-22 soon or whether I could pay before 31st March 2022 ?
Thank you Sir once again,
gk

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 August 2021 20% tax payable on 15 lacs minus indexed cost of acquisition. File ITR before September 2021 and pay taxes.

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