Capital gain

1. In this case Mr. Raghu has sold the property within 36 months which was gifted to him from his father – Will this be considered at STCG or LTCG for Mr. Raghu ?

Long term as the period of holding of donor is considered in case of Gift. Now the period of holding reduced to 24 months.

2. If the gifted property is sold within the minimum time of 36 months how the tax will be computed in case of Raghu? ( Mr. Raghu’s annual income is 5 Lakhs per annum)
Long term capital gains tax @ 20% after all available exemptions as per investment done by Mr. Raghu

Thanks a lot sir...

1. Can Mr. Raghu invest the amount in purchasing the new residential site / use it for construction ?

2. Can he repay the existing site purchase loan which was taken 6 months prior to the date the property was sold?

3. Can he invest in Capital Gain savings account?

4. How can he be exempted from capital gain tax?

 

1. Yes, and can get exemption u/s. 54F with its compliance.

2. Yes, but no tax-exemption benefit available

3. Yes, if he wishes to invest the amount for any exemption scheme and wants to park that capital till invested further.

4. House purchase/construction u/s. 54F, capital gain bonds u/s. 54EC...........

So kind of you Sir... it was really helpful....