Purchased a car from capitail gain on selling a na land.

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Shobha

N/A

29 Points Posted on 12 April 2013

Hi,

So my question is, how much tax will i need to pay, AND more importantly, anyway to save some money, i mean i know Cap gain tax is 20%, but should i get Life insurance or mutual funds so that i can save some money?

Common, they just charged me like 1.5 lakhs tax on the car, what more do they want from me?

Replies (3)

Ankush sharma

Auditor Article Assistant

816 Points Posted on 13 April 2013

ASSUMING THAT LAND IS SOLD IN P/Y 2012-13

SALE 15,50,000

ICOA (3,40,800) 40000 X 852 \ 100 (BASE IS 100 AS THE ASSET WAS ACQUIRED BEFORE 1981)

LTCTg 12,09,200

This 12,09,200 should be invested in either sec 54b another agriculture land (for tax planning purpose

investment should be made in agriculture land = full exemption available

in sec 54f you can purchase new residential house property but proportionate exemption is available

you can invsest in specified bonds NHAI REC within six months full exemption available

sec 54gb seb to conditions proportionate exemption available

I sold a N.A. land which was transfered to my family members (brother and sister) after death of my farther for 15.50 lakhs, and i purchased a new car for 12 laks on road price (this was kinda stupid move), also purchased gold for 2 lakhs. And the land was purchased by my grandfather in 1964 for 40 thousand. So my question is, how much tax will i need to pay, AND more importantly, anyway to save some money, i mean i know Cap gain tax is 20%, but should i get Life insurance or mutual funds so that i can save some money? Common, they just charged me like 1.5 lakhs tax on the car, what

Read more at: /forum/purchased-a-car-from-capitail-gain-on-selling-a-na-land--246140.asp#.UWjHuzcwDEQ

Shobha

N/A

29 Points Posted on 13 April 2013

Ohh no, Rs. 240000 tax, thats too much, why wasnt i born in switzerland????

Already spent the cash on car, so i guess there is no turning back, its sad that my gold investment aint saving me any tax.

Ohh and i have a agricultural land in murud, if i show that the money was spend in construction of a house and walls on that plot, will that save me tax?

Ankush sharma

Auditor Article Assistant

816 Points Posted on 13 April 2013

yeah

but dont worry this burden can be waived

you dont need to be in switzerland for that, we people are clever enough HEHE

coming to the point

yes, you can avail such exemption by constructing the house on that agriculture land but only the construction expenses are allowed to be exempted (condition house completed within 3 years) u\s 54f but full exemption is not available in this case

the formula is calculated u\s 54f = LTCG \ NET SALE * AMOUNT INVESTED

or you can deposit the amount in CGD A\C for the exemption

in other areas tax can be saved as sec54b sec54f sec54ec