1. Hi Manikaran thanks for the good article.
    I brought flat in 2008 for 5.6 lac and now I am selling it for 14 lac. how much capital gain is there.

    also taking new house how much amount I have to reinvest to save tax.i si have to invest all 14 lac or as explained earlier only indexed amount I have to invest which is taxable.

    • The cost (5.6 lakhs, as you said) is to be indexed with the CII number of the year of sale with that of year of purchase, as Cost(5.6 lakhs)*CII year of sale)/(CII year of purchase).
      Also, if you made any renovation to the flat, that also needs to be indexed with the CII of the year of sale and the CII in the year of renovation and to be added to the cost.

      Sales Proceeds (14 lakhs, as you said) less this amount would be the Long Term Capital Gain/Loss.

      To get the tax exemption u/s 54, you may invest only the gain portion, in another residential property.

  2. If I sell a commercial property and want to save capital gains tax under section 54 EC, would i have to buy bonds only from the capital gains or the total sale amount?

  3. Sir, I am planning to sell my commercial shop which i got as my ancestral property in 1995. My ancestors got it in 1955. Sale realization is 12 lakhs and i want to invest in 54 ec to save tax ? Please sugest do i need to invest whole sale amount or only capital gain ?

    • Hi, i have inherited commercial property from my parents in 2001, if i plan to sell this property now,

      Property purchased by my father for 2 lakhs in 1980, currently property selling price is for 30 lakhs,

      what is the percentage of LTCG tax on it as per 2020 taxation..?
      what are the options to save tax (if any), ?
      On what amount LTCG has to be paid ?
      For ex: if LTCG is 20%, do i have to pay 20% on 30 lakhs, or i get any option to reduce the amount by claiming inflation calculation, maintenance of last 20 years, expenses to sell the property…etc..

      Your advice will be helful sir.


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