Capital gain taxation

Dear Sirs,

I am planning to sell a residential plot (land) in next 30 days, which I purchased in the year 2006 (Fy 2005-06). The net capital gain after indexation etc. works out to be Rs. 10 lacs. The options left before me are

A) pay capital gain tax as applicable and enjoy the balance

B) Invest the gain in a residential house purchase and avail tax benefit u/s 54F or so.

My question is if I already have a house can I avail option B.

Kindly advise.

Thanks in advance for your usual prompt responses

 

GR Babu

 

 

Replies (6)
Yes you can avail option B as you can have 1 house and still claim benefit US 54F.

Thank you. Further to my query above also please clarify the following.

Suppose the current market value (official Govt value) is Rs.1000 and I sell at Rs.2000, how do I account for the difference?

either pay tax for 1000 or keep it as unaccounted income
If you want an all white deal then show the deal at actual agreement value ie... 2,000/-. Or if you are ok with black component then show deal at 1,000 and take the rest in cash which will remain unaccounted.

Thanks I will prefer all accounted for and pay taxes

That's great to know Mr babugr

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