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Tax and investment on capital gains

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apro

TaxPayer

50 Points Posted on 16 December 2022

Hi Sir,

My queries regarding income tax on capital gains are as below

If I make profit (short term or long term) of ₹ 2,00,000 profit after sale of shares can I buy 4 wheeler to claim tax returns ?
if I make profit of ₹1,00,000 on sale of house can I invest the profit in buying shares of any company in the same financial year ?

Replies (5)

Quick Summary

This discussion clarifies how capital gains tax works in the UK, specifically regarding profits from selling shares and property. It explains that simply buying a car or shares with your profit won't reduce your tax bill. However, you can reduce your Capital Gains Tax (CGT) liability by investing in specific Capital Gains bonds (Section 54EC) or by using the gains to repay a home loan.

Aman Agrawal

....

101 Points Posted on 16 December 2022

No you can not save taxes like this

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212495 Points Posted on 16 December 2022

1. Not directly, but tax liability can reduce if you have any other income under normal slab rate.

2. Yes, you can purchase anything, but CG tax will not reduce. To reduce the LTCG tax liability you need to invest in Capital Gains bonds u/s. 54EC of the act.