Say I have sold a property on 1/jan/20 having capital gain of 50 lakhs and
another on 1/sep/20 having similar capital gain of 50 lakhs.
Can I avoid capital gain tax by investing in 50 lakhs in bonds on 1/5/20 and another 50 lakhs on 1/oct/20. If this is not allowed because I cannot invest more than 50 lakhs in a FY, Can I invest 50 lakhs on 1/mar/20 and 50 lakhs on 1/oct/20 to avoid capital gain tax on both sales?
Thought so. The amendment was supposed to fix situation where people with 1 Cr capital gain were investing 50 lacs each in 2 Fin years.
But verbatim from IT act gets me confused.
"Provided further that the investment made by an assessee in the long-term specified asset, from capital gains arising from transfer of one or more original assets, during the financial year in which the original asset or assets are transferred and in the subsequent financial year does not exceed fifty lakh rupees."
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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