Hi,
Need help on the long term capital gains (LTCG).
I am planning to sell my residential open plot ( Vacant Site ) and need to know if I can use one portion of the sale consideration to purchase another open plot and invest the remaining amount in Tax saving Infrastructure Bonds.
I have consulted couple of CAs and few mentioned that to get tax exemption we need to invest in a residential house and not in residential site.
If I can invest in another residential plot, please confirm if the investment be made in Infrastructure bonds + Residential Plot + deposit in capital gains account ( remaining amount ) and construct a house in the open plot before 3 years ?
Example : Please let me know if below plan can be followed to get exemption from long term capital gains.
If Sale Consideration is 1 Cr.
Tax Saving Bond - 50 Lakhs
Investment in residential plot : 40 Lakhs
Remaining 10 Lakhs in capital gains account.
Regards,
Mahesh
CAclubindia
