Query on long term capital gains tax

Hello dear,....... answers to your questions are...

1) Your tax will be long term capital gain calculated as follows:-

         Sale consideration by you in 2012                                                               XXXX

Less:- indexed cost of acquisation by your grandfather                                   (XXXX)

Less:- Indexed cost of improvement by your father,grandfather,or yourself (XXXX)

Less:- Expenses of transfer incurred by you( include stamp duty paid,paper

work fees etc)                                                                                                             (XXXX)

                                                                                      Long term capital gain         XXXX

 

2) such long term capital gain will be taxable at a flat rate of 20% further increased by 3% education cess. You are required to pay this tax before 31st march 2013.

3) As per sec 54F you can save the above tax by investing the entire sale consideration in purchase of  1 house property 1 year before and 2 year after such transfer.

Hi, Thanks very much for the reply. Am I entitled to benefit under sec 54F even I already own an independent house at the time of sale of the vacant land? When I look at sec 54F, I am getting the impression that I am not eligible for that deduction if I already own an Independent house at the time of sale. Is my impression correct?

Thanks again for an expert answer to these queries!

Thanks and Regards,

Mohan

No it is not like that......u are mis interpreting the law. according to sec 54 f ,the conditions are:- 1) u must transfer an asset other than a house property. 2) on the date of transfer u should not own more than one house property in your own name ( not counting the house newly purchased under this sec)