Ltcg

i want to sell a residential property ,

After selling it and with the amount of ltcg being invested in another residential property (to exepmt from ltcg) , can i use the surplus to purchase any other property or deposit in bank , 

will i be liable for any other tax ??

Replies (3)

Dear Sahil 

You have to deposite the amount of capital gain in tha capital gain scheme a/c with bank to avail the benefits of section 54.  Say if your capital gain is 30lakhs then you have to deposit the amount in capital gain sch a/c with bank before due date of income tax return under sec 139(1). Then you can utilise the amount is purchase and contruction of building within time specified under sec 54 to more than one property. 

Regards 

thnks sir , 

can u elaborate a bit more

suppose sale is for 100 lakhs

and ltcg is 40 lakhs 

can  i buy another residential house of 40 lakhs nd invest remain in another commercial property or fixed deposit >??

Sir as your Capital gain is 40Lakh which you invested in new house property so no LTCG on the said 40lakhs.

Now remaining 60 Lakhs can be used freely in buying commercial property or FD as per your choise. No problem. 

regards

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