Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Long term capital gain on residential house sale

Tax queries 671 views 1 replies

MG

28 Points Posted on 13 July 2010

Long term capital gain on residential house

I am an NRI. I bought a residential house on JUN-2004 and sold that house on MAY-2010 and
earned long term capital gain in my individual name. now where to invest to save long term capital gain tax,

1.reinvest in which type of property and in how many days

2.can i invest in agriculture land? IF yes, how long i have to keep that agriculture land to avail long term capital gain tax exemption?
When can i resale the agriculture land? Is it allowable to convert the agriculture land as a plot and resale it?

3.Can i buy the property in my wife name?

4.capital gain bond and in what time.

5.or any other way to save?

Replies (1)

Amir

Learner

4016 Points Posted on 13 July 2010

Dear Sir/ Mam,

1) Option 1- Another Residential House -

- If feel like buying then within 2 years from the date of sale.

- And if u feel like construction ur own house then 3 years from the date of sale.

Option 2 - Invest in REC / NHAI Bonds - Maximum Limit is Rs. 50 Lacs - with in 6 months from the date of sale.

Option 3 - Both Option 1 & 2

2) Sorry, no tax benefit is available if invested in agriculture land.(Don't think now you will be interested in knowing the answers of other related questions)

3) Yes, but better option is to include ur name as Joint owner.

4) Already answered - refer Point 1

5) Ya, run away from India..............:) he he he...Sorry, Just kidding..........I mean answer is No.