LTCG on land sale, time limit

The said person is above 81 years old

The taxpayer has the option to pay 20% tax with indexation or 12.5% tax without indexation as the land was acquired before 23rd July 2024. The better is 20% indexed choice. The person is a super senior citizen and can thus get further relief from this tax liability by way of unutilized part of his basic exemption limit.

The entire net sale consideration of 52 lakhs should be invested in a residential apartment to get full tax exemption. The apartment should be bought within 1 year before or 2 years after the date of sale of the land or constructed/completed (in case of under-construction property) within 3 years from the date of sale.

If the individual is unable to find a suitable flat or complete the purchase before the due date to file the income tax return for the current financial year, then he/she will have to park the unutilised amount of 52 lakhs in a Capital Gains Account Scheme (CGAS) account in an authorised public sector bank. The funds are deposited in this account before the tax filing deadline, the exemption is fully preserved, and the real estate transaction can be completed within the permitted 2 or 3 year period.

Thanks a lot Sir. The reply was very helpful

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