How to save capital gains on property

Tax planning 206 views 5 replies
  • ISir

My i have sold a property in ay 2016-17 which was purchased in ay 2008-09. Now i have to pay capital gains around to 200000 what should I do to save this tax. 

What types of improvement cost can be considered for 

Replies (5)

if it is house property than best way to avoid tax is investing in new house property with in 2 years or construct new propoerty with in 3 years. Hence it is a long term capital gain hence exemption u/s 54 can be claimed. Also used indexation for calculating capital gain. by applying Cost Inflation Index.

Which costs can be considered for improvement cost and can be indexed. 

Cost incurred for repairing and renewation of house such as any plastering, painting cost etc.and indexation benefit will be given by applying Cost inflation index in which such improvement has been undertaken and CII of that year in which such assets is transferred.

Whather new house is purchased on loan then exemption u/s54 available. 

If other conditions as per the section are satisfied, exemption u/s. 54 can be availed even when the same is purchased on loan.


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