Tax and investment on capital gains

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TaxPayer
50 Points Joined February 2018

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 ?
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On 16 December 2022 at 12:10 Report
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....
101 Points Joined July 2014
No you can not save taxes like this
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On 16 December 2022 at 12:43
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SEO Sai Gr. Hosp.
209224 Points Joined July 2016

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.

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On 16 December 2022 at 13:24
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28032 Points Joined May 2017
1. you cannot claim sec 54 benefit against buying of 4 wheeler. But can be set off against short term Capital loss.
2. point 2 ok Sec 54EC
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On 16 December 2022 at 14:01
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TaxPayer
50 Points Joined February 2018

how much tax do I need to pay on capital gains of stocks ? And can I claim tax benefit if I repay house loan from capital gains on stocks ?

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On 16 December 2022 at 15:55
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28032 Points Joined May 2017
XPLS PROVISE REALISTIC SITUATION ABD KEEP ME POSTED ASAP. you can claim tax benefit if u repay house loan.
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On 18 December 2022 at 15:53


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