In Chennai I have a self earned flat and an independent house settled in my name by my siblings in 1996. The value as on the date of settlement is about Rs. 5 Lakhs and today it can fetch me around 2 Crores.I am planning to sell this independent house and the options before me are:
1. Invest upto the permissible limit in tax saving bonds and use the balance sale proceeds in my business.
My Question:- How much I can invest in bonds and what would be my long term capital gains tax outgo?
2. For the same value of sale proceeds can I buy another house so as to avoid any tax?
My question:- As on date I have the flat and Independent house in my name that being the case can I book for a new flat which will be ready in two years' time by paying an advance of say rs. 25 lakhs from my funds and then sell the independent house and pay the sale proceeds to the promoter and take possession of the new flat. Is it admissible in eyes of tax law?
Look forward to guidance from experts.
CAclubindia
