House hold property

If someone sale  the house built on his abadi land, then how can he save tax on the amount received from it?

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Quick Summary
This discussion explores tax-saving options when selling a house built on abadi land. It highlights exemptions available under Section 54 of the IT Act by purchasing a new house property, or under Section 54EC by investing in capital gains bonds. The content clarifies that money spent on building a new house property can also qualify for exemption from long-term capital gains tax on the sale of the existing house.

By purchase of any house property as specified u/s. 54 of IT act....

Or by purchase of capital gains bond as specified u/s. 54EC of the act..

Will the money spent to build that house be exempt?

 

Money spent to build any new house property will exempt the LTCG of the present house sold.

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