Stcg on sale of plot

Tax planning 515 views 1 replies

Is there is any tax planning for saving short term capital gain on sale of plot? Please advise.

Replies (1)

Exemption by investment of capital gain from short term capital assets is available u/s 54B, 54D, 54G 54GA only.

 

Prima facie, this land does not belong to an industrial undertaking so we are left with only Section 54B for urban agricultural land. Now I am going to assume that this land is not urban agricultural land.

 

In such a case, since it is not a STCG covered u/s 111A of the Income tax Act, the rate of tax will be slab rate. You can claim Chapter VI-A deductions like 80C-80U against this income. You can set off the losses - House property, business/profession, unabsorbed depreciation, capital gains, other sources - against this STCG.


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