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

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

or

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

or

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

or

sec 54gb seb to conditions proportionate exemption available

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?

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