Capital gains tax

Dear Experts,

I sold my house in July 2016 for 1 Crores and the Capital Gain computation turned out to be 32,50,000/= (by an Auditor I consulted that time) and have  the indexation workings with me.

In January 2016 I deposited the sum (32,50,000/=) to Capital Gains Deposit Account in a nationalized bank.

Ever since I haven't bought a residential apartment or property yet. By this, I assume I'll need to pay 20% tax on LTCG by JUly 2019.

Is there a way to legally avoid paying this tax.. such as by reinvesting in NH bond or any other means?

What are my options available now? (other than having buy an individual house by July 2019)

Thanks.

Replies (10)

No more option available now, except constructing a house property by July 2019.

concur with Mr Dhiraj view

Thanks for the response, sir.

Can I buy a independent house (not apartment) that's already constructed and available for sale now?

as of now the time limit for purchasing house property has expired (2 years from the date of sale) the only way to avoid capital gains tax is to construct a house property. this is my humble opinion. let's wait for experts opinion

Yes, correct.  No more option even for PURCHASE of any ready made house property, but any underconstruction property can be purchased which may get ready to occupy before July, 2019.

Does altering an existing house property count? Such as buying an old property and doing a major revamp. Does this revamp count as "under-construction"?

Thanks for the insights so far!

Does altering an existing house property count? Such as buying an old property and doing a major revamp. Does this revamp count as "under-construction"?

Also, can I use the parked LTCG funds for buying a *land* and then constructing?

Thanks for the insights so far!

Surely, provided old construction demolished completely.

Otherwise little difficult to convince at AO level; though some case-laws are in favour of assessee.

"Also, can I use the parked LTCG funds for buying a *land* and then constructing?"

Yes, but check that the amount of CG gets completely utilized in new construction before July 2019.

Excellent! Thanks for the insights, sir. 👌

Will further pursue it with an auditor to get this done.

Best Regards.

 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
15 October 2026
Senior Accountant

Continental Belting Pvt Ltd

Mumbai

B.Com

View Details
Company
26 September 2026
Chartered Accountant

pushpganga ventures

Pune

CA

View Details
Company
19 October 2026
Accountant

Jari Saree Center

New Delhi

Others

View Details
Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details
Company
ARTICLESHIP 28 September 2026
Junior Accountant

J S P M & Associates LLP

Pune

B.Com

View Details
Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details
Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details
Company
16 October 2026
CA article trainee

Zerdi & Co. Chartered Accountants

Pune

CA Inter

View Details