Capital gain

She is liable to pay tax under LTCG

Excemption available::

Sec 54::

To the extent capital gains invested (on or before duedate of filling return) in either purchase of other residential propety (with in two year) or in Construction of residential house property (with in 3 years)

Sec 54EC::

To the extent capital gains invested (with in 6 months form date of such transfer) (subject to max of Rs.50L) invested in long term specified bonds as specified by the Govt.  for minimum 3 years

Thanks for the response.

Exemption under sec 54 is available even if the investment is done in 3rd property ?

1) If the Plot is sold after three years from the date of acquisition, then the assessee shall be liable to pay tax on long term capital gain arising on the sale of the Plot.

2) As per Section 54F of the Income Tax Act, 1961, any LTCG arising to an Individual / HUF shall be exempt in full, if the entire net consideration is invested in purchase of residential property within one year or two years after the date of transfer of such an asset or in the construction of one residential property within three years after the date of transfer.

3) Further according to section 54EC of the Income Tax Act, 1961, any LTCG arising on the tranfer of asset shall be exempt to the extent such capital gains is invested within a period of 6 months after the date of tranfer. Therefore, you can invest the capital gains in NREC and NHAI Bonds to save capital gains tax.

Regards,

Devendra Kulkarni

• Plot here would constitute a vacant piece of land....so if the plot is sold then cap gain arising can be saved by investing in 54EC bonds-NHAI/RECL....but exemp u/s 54EC only if the assests can be termed as long term i.e used for 3 yrs.
• Exemp u/s 54 is not available bcos assessee alreay more having  a res house....