I have inherited land before 1982 and now I want to sell it..How I can get exemption from capital gain tax on the recieved amount what are the different ways ?
just refer SEC 54B(If the land was used for agriculture purpose by individual or HUF)and section 54EC.check which provisions are more beneficial to you as there are certain restrictions in both sections.Feel free to share your queries
you can get benefit under 54F, where you need to purchase new residential house property within 1 year or before due date of filing of return whichever is earlier, however You should not own more than 1 residential house (other than the new one) on the date of transfer.
also under 54 EC you can invest the amount of capital gain in specific bonds such as National Highway Authority of India (NHAI) or Rural Electrification Corporation (REC) have been specified for this purpose. These are redeemable after 3 years and must not be sold before the lapse of 3 years from the date of sale of the house property. You are allowed a period of 6 months to invest in these bonds , though to be able to claim this exemption, you will have to invest before the return filing date. The Budget for 2014 has specified that you are allowed to invest a maximum of Rs 50lakhs in a financial year in these bonds.
CAclubindia
