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Capital gain - sale of land

Tax planning 703 views 4 replies

CS Alok Mishra

Income Tax Practitioner

791 Points Joined February 2011

Hi Friends, First of all Happy Friendship Day to all of You.

Now my query:

I have a client who sold a land of Rs 16lakhs in 2011-12 which he had bought in 1985 for Rs. 8000 only. He also bought a land in 2011-12 costing Rs. 450000.

In this regard i want to know whether there is any way out by which tax on long term asset (Land) can be saved. Plz show me the proper way. Its urgent.

Replies (4)

V.Saradha

Accounts Officer

24 Points Joined June 2008

we can do tax savings only if we invest in residential property and not a new land

Guest

U can also purhcase NHAI & RECI Bond under section 54EC.

CS Alok Mishra

Income Tax Practitioner

791 Points Joined February 2011

Dear Ganeshan, can u plz make me clear whether NHAI & RECI bond are applicable on Land. I think its for residential house property only

. Plz rectify me if i m wrong

Guest

under section 54EC : LTCG on transfer of any LTCA shall be exempt if the amt. of capital gain is utilised for purchase of bonds of NHAI & RECL within the following time limit.

Time limit: the bonds should be purchased within 6 months after the date of trasnfer.