Jugal Mansharamani (c) (83 Points)
18 April 2012Mr.A HAs recvd amt of rs 3 crores from land sale, he wishes to save tax to the maximum.
he has bought a flat amt to rs.60 lacs,wats the possible allocation of rs.2.4 cr to save maximum.
i have heard u can invest in bond upto rs.50 lacs...can he do so..?? wat abt the rest amt? can he buy 1 more property,alrdy holding NO property.
sunny bagla
(Lawyer)
(47 Points)
Replied 18 April 2012
Mr A can buy a capital Gain-tax SAving Bond upto any amount i.e there is no limit of Rs. 50lac. he can buy even of 2.4cr.
to save tax, the only option left is to buy a capital gain bond as he had already bought one flat as he cannot buy more than one property otherwise whole amount will be taxable.
and also first find out your Capital gain on the as per Indexation and then invest the amount accordingly.
Thaking You.
Sunny Bagla
Advocate
9810484999
Jugal Mansharamani
(c)
(83 Points)
Replied 18 April 2012
sir but REC & NHAI has max limit of 50 lacs
Jugal Mansharamani
(c)
(83 Points)
Replied 18 April 2012
can u provide me the link werein it states u can invest any amt in bond & there is a limit to buy jst 1 property
sunny bagla
(Lawyer)
(47 Points)
Replied 18 April 2012
REC and NHAI has the limit of Rs.50lac is for investment per year, and not exemption per year.
This is applicable, if your six-month limit falls in between two fiscal years. So if he manage to sell your property after October any year, you can actually double your tax benefit.
that way tax can be saved to some extent.....
Jugal Mansharamani
(c)
(83 Points)
Replied 18 April 2012
property is sold in april 12,wats the alternative now? can u gv me link werein it states 2 proprties cant b bought
sunny bagla
(Lawyer)
(47 Points)
Replied 18 April 2012
yes there is a limit to buy just one property
C.A. M.Com. Suhas A. Nagpure
(CA)
(1175 Points)
Replied 18 April 2012
Dear Jugal,
One clarification Is land is agriculture land?
K.Senthil Raja
(Practicing Chartered Accountant)
(32 Points)
Replied 23 April 2012
The section under which you can claim exemption is 54F as the asset sold was a vacant land and invested in resi house property. Before going further, you have to ensure that the asset sold was a long term capital asset. More than one property will not be eligible for an exemption u/s 54F.
The exemption u/s 54EC is limited to 50 lakhs.
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