i received a share of my family property, one year ago. Now i want to sell the property.
The sale amount will be in 40 lakhs.
After sale If i purchase another property with half the money
Then rest of the money how can i utilize to avoid paying tax.?
Menu
Tax on sale of property.
Replies (8)
Is it commercial property or residential property ?
Land only for residence
Long term Capital Gains on sale of real estate are taxed at 20%, plus a cess of 3%, if the sale fulfils certain conditions. If you sell a property that was gifted to you, or that you have inherited, you will still be liable to pay capital gains tax on it.
What if I use the sale amount to buy a property or construct a house?
Than u can get exemption u/s 54F up to the amount utilised in same.
But it is land and not residential property. So please check again
Section 54F of the IT Act allows an exemption on capital gain from sale of any property other than a residential house. This exemption is subject to certain conditions which are:
- Taxpayer should invest the net sale proceeds of the property in purchase of a new residential house.
- The new residential property must be purchased either 1 year before the sale or years after the sale of the property/asset Or the new residential house property must be constructed within 3 years of sale of the property
- Taxpayer should not own more than one residential house on the date of transfer, other than the one bought for claiming exemption under this section.
You can avoid tax provided you follow Sec 54
Recent Threads
- Utilizing Capital gains in new home construction
- Hi i have some doubt about my microsoft exam?
- Period of holding of residential flat and its acqu
- ITRs for AY 2025-26 filed in September 2025 not pr
- Heard & Seen Around – Your Daily Economi
- Best NISM course for an Accountant
- Calculate IT on LTCG AND STCG for the FY 2025-26
- Heard and Seen Around - Your Daily Economic Quick
- Returning to India - Residency confusion
- About CMP-08
Related Threads
CAclubindia
