Hi, I went through some articles onine on long term capital gains tax and am little confused. My query is, I had a residential land bought about 5 years back for 5.25 Lakhs and I sold it last year(that is in the current financial year) for 20 Lakhs. I have invested the gain in two residential land with this money plus my savings. Can you help me understand,
a) Whether the amount invested in Residential Land is good enough to avoid long term capital gain tax and whether two properties can be clubbed and shown ?
b) or Does it need to be Residential House / Flat ? If it should be, then if i am doing self construction of the house what all proofs i need to submit to IT ? Also are there any criteria like it should be my first or only residential house and i should not be buying another Residential house/flat for certain period ?
c) If Residential land is not considered and say my construction would require time, before when should I deposit that amount in the special Capital gain account, is that before the financial year end or any other criteria ?
d) Any other points that i should be aware of or keep in mind for this Long term capital gains exemption ?
Thanks,
Karunakaran
CAclubindia
