Options to save capital gain tax can be used simultaneously

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Vidya Sagar Sharma

Proprietor

54 Points Joined August 2011

Sir, I bought an agriculture land in 1999 for Rs.245000.00 admeasuring 1600 Sq.Mtr. Sometime around 2005 I constructed a building over approx.180 Sq.Mtr. In June 2011 I sold it for Rs.16400000.00. Thus the capital generated is around one crore and sixty lacs approximately.

1. I purchased a residential property for Sity five lacs approx. in August 2011.

2. Now I want to know that for the balance unused amount of capital gain, can I purchase one or more agriculture properties at different time in near future.

3. Also can I use some amount in particular Bonds allowed to save capital gain.

In brief I would like to have your advice that can I use all the three options in saving capital gain simultaneously. I am already having an agriculture land purchased around 2004. I am also having one residential property build and occupied around 2005.

Is there is any restriction in purchase of agriculture lands as in case of residential property.

Please advice me on my mail ID sagsha_51 @ yahoo.co.in.

Thanking you.

(V.S.Sharma)

Contact No. 09352410194

Replies (2)

Dheeraj

Learner

1100 Points Joined February 2009

Dear M'am,

You can invest till filing your incometax return, i.e as per your case you sold asset in financial year 2011-12, therefore you can invest till 31st july 2012 or filing your income tax return, whichever is earlier.

* applicable only if invested in property

And for investment in bonds etc. time limit is 6 months from the sale of property

Sumit Grover

Chartered Accountant

3652 Points Joined September 2008

1) You will get exemption under section 54F for the amount invested in residential property.

2) investment in agricultural land can be made upto 2 year from the date of transfer. however, if the amount is not invested till the date of filing of return, then the same can be deposited in capital gain a/c wid scheduled bank and from there, the amount can be utilised widin the stipulated time period.--section 54B

3) Investment can also be made under RECI,NHAI bonds within six months from the d8 of transfer. But tha maximum amount dat can be invested in bonds in one FY is upto Rs.50Lakh.--section 54EC

Plz correct me if m wrng.