Tax avoidance in case of sale of land

Section 54F.. residential property.

do we have only this option? Mr.A has cg of 3 crores but he wants to buy property worth only 1 cr ,wat can he do with the balance 2 crores,can he invest 50 lacs in bond?

pls revert

jugal, yes he can invest in bonds.. but if u read the section 54EC carefully thr are chaces that you can get deduction of upto 1 crore.

yup i read it...thnks...bt property is sold in april 2012..so max in bonds is 50 lacs + 1 cr property...rest 1.5 crore has 2 b taxed or is there an option...

suggestion would be that instead of paying taxes, deposit the same in CG A/c.. tht way u can atleast delay the tax incidence by 3 years even if u dunt wanna invest any further...

Ankit... Plz explain how can he get the exemption of another 1 crore through 54EC

Dear Manish,

Investment u/s 54EC is allowed upto 50,00,000 per year and it is to be done within 6 months from the date of transfer of asset.

Suppose, you have sold the asset in the month of December with the capital gain of 1 crore then 50,00,000 you can invest by March and another 50,00,000 in next year by June. This way you can save 1 crore u/s 54EC.

Hope idea is clear.

Thanks

Mihir Doshi