Hello Experts,
My mother is about to sale the ONLY house which is in her name and she is a senior citizen.
She is also planning to buy a new flat in another city with the money she will get after saling the house.
Will there be any liability to pay capital gains tax or any other tax if she is investing the entire amount to buy another property for self consumption?
If there is liability, how can she avoid it or reduce it?
Thanks in advance for your reply.
With regards,
S U Gaulkar
UPTO 5 LAKS NO TAX PRESUMMING TO BE VERY SENIOR CITIZEN ABOVE AGE OF 80 ELSE UPTO 2.5LAKS
SHE MUST INVEST THEBALANCE CAPITAL GAIN AFETR DEDUCTING THE ABOVE AMT IN PURCHASE OF NEW HOUSE/ CONSTRUCT IT.
IF STILL ANY CAPITALGAIN REMAINS IN HER HAND DEN INVEST IN 54EC -REC/NHIL BONDS UNDER SEC 54EC WITHIN 6 MONTHS FROM DATE OF TRANSFER OF SOLD HOUSE.
There is no provision of tax exemption for female or senor citizen in capital gains, everyone has to pay capital gains tax if they're liable to pay , as one is reinvesting entire amount in buying property then one is fully exempted from capital gains tax & there is no other taxes applicable in this .
And remember
if capital gains < reinvestment in property
then fully exempted otherwise partially
Agreed with Saurabh...........
CCI
Pro
CAclubindia
