Hi,
I have given my land for construction to a builder. After completing the construction I was handed over my share of flats in May 2024. I am 74 yrs old.
I understand I have to pay capital gains tax on it, but my question is do I need to pay full capital gains by 15 June 2024 or I can make part payment.
Please suggest.
If you do not have any business activity, i.e any income u/h. PGBP, you are not liable to pay any advance tax.
Section 207 IT act gives relief from payment of Advance Tax to a Resident Senior Citizen.
Sir thank you very much for your help.
Sir I have income from pension, no business or any other income.
so do I need to pay advance tax.
please suggest.
No. You are exempted from advance tax liability.
Sir didn’t got it.
Sir it means I have to pay advance tax or not.
Simply, you are not required to pay advance tax.
Thank you very much sir.
You are welcome.
ok thank you will look into it.
Hi there is one query about sec 54 EC :
Is this illustration correct or I am missing something.
| Particulars | Amount (Rs.) |
| sale consideration | 1 cr |
| Less: Indexed cost of acquisition | 46 lakh |
| Less: Indexed cost of improvement | 10 lakh |
| Net | 44 lakh |
| LTCG 20% | 8.8 Lakh |
| Investment under 54 EC |
8.8 lakh |
so Net Tax - NIL
You need to invest net long-term capital gain from the sale of Land / Building in Capital Gain Bonds to claim a deduction u/s 54EC. Thus, in the given case you need to invest Rs. 44 lacs. Investing Rs.8.8 lacs shall allow you a deduction u/s 54EC to the extent of Rs.8.80 lakh and the balance shall be liable to capital gain tax. It is the net taxable capital gain that has to be invested and not the tax. The investment in bonds is subject to a maximum of Rs.50 lacs in a year.
| Originally posted by : PARAS CHHAJED | ||
 |
You need to invest net long-term capital gain from the sale of Land / Building in Capital Gain Bonds to claim a deduction u/s 54EC. Thus, in the given case you need to invest Rs. 44 lacs. Investing Rs.8.8 lacs shall allow you a deduction u/s 54EC to the extent of Rs.8.80 lakh and the balance shall be liable to capital gain tax. It is the net taxable capital gain that has to be invested and not the tax. The investment in bonds is subject to a maximum of Rs.50 lacs in a year. |  |
ok got it...thank you very much.
CAclubindia
