Long term capital gains

Dear Sir

I sold a property (residential plot) worth Rs.5 lacs which was bought by me in Jan 2003 for a sum of Rs.45 lacs. I sold the property in April 2013. As of date, I have missed the deadline for investing in LTCG bonds( 6 months period). I do own a house in the city where i currently reside.

My queries are as follows.

1. Can i buy an other plot and build a house on the same?

2. Can i invest the LTCG amount in CGAS now and maybe take out the same after 3 years without purchasing any property? If so, what is my tax liability? Will i have to pay interest on tax amount due on LTCG amount if i close the CGAS after 3 years?(which is the period available to build house)

3.If i invest it in CGAS now, will i get 2 years to buy a plot PLUS 1 year to build from the date of activating CGAS?

4. If i build a house on a plot of land i buy, what kind of documentation is required to prove to the IT dept that i have bought a plot and built a house? ( contractor bills / suppliers bills etc)

Your reply is appreciated.

Regards

VADHIRAJ.D.G

LTCG Computation

Sale consideration = Rs. 45,00,000/-

Less Indexed cost of acquisition = Rs. 10,50,335/- (5,00,000 x 939/447)

Long term capital gain = Rs. 34,49,664/-

Long term capital gain tax = Rs. 6,89,933/-

You are required to invest 34 lacs to save tax. Since you have sold the plot in april 2013, you will have to buy a property before you file your IT returns (31st july 2014). Since it is a plot, you may purchase another plot worth 34 lacs and avail exemption u/s 54F.

If there is a delay in purchasing before 31st july, you are required to deposit the money in capital gain account. I don't think depositing the capital gain account will save tax, because this account is used mainly to park your funds before you invest somewhere.