167 COMMENTS

  1. Sir,
    We are selling our ancestral urban agriculture land and we have made agreement with the buyer and he paid us Rs.35/- lakhs as advance in last 1.5 years. and we have decided to buy a Flat for Rs.52/- lakh and paid Rs.20/- lakh as advance to builder. now since our land buyer is not paying us his balance amount our Land Sale Deed is delaying and it may take another 1 year also.
    my question is as our builder asking us to get our final Flat Sale Deed complete if we now get final sale after making payments from advance received and rest from our side before the our Land Sale
    Deed complete in this scenario can we claim exemption u/s 54F.
    sir pls. reply…

  2. Sir,
    We have a commercial property in the name of our partnership firm where me and my brother are equal partners for around 18 years. We now want to sell it and buy a residential property in me and my brothers joint name. So my question is can i save on LTCG if all my proceeds from the sale is used to buy the said flat.Thanks in advance

    • I believe in this case tax can only be saved if the Residential property or 54EC bonds got purchased in the name of Partnership firm only, it being a separate tax entity. Though not completely sure. You better should contact a good CA in your Vicinity.

  3. Sir I’d given my house for redevelopment to a builder and got additional flats according to development aggrement. Now I have sold one flat which I assume is capital gain. Can I buy commercial shop on this amount. Will i still have to pay tax on capital gain

  4. Sir,

    I have sold a commercial shop that I had bought in August 2016 . Date of sale is in october 2018.
    Will this be treated as a short term capital gain or long term capital gain.

    Can I offset this gain against loss from futures and options transactions that I have carried forward from last year?

  5. Dear Mr Singal Good day !
    my father bought a commercial property in 1986. 2 yrs back he expired. we r 6 children. 2 of my sisters r abroad so we got a release deed done in our mother’s name in Aug 2018. we recently sold the property and divided the proceeds among ourselves. just today i got to know about the capital gain tax.
    could you pls let me know more about capital gain and how it is going to affect my mother and others details.
    how do we avoid paying this tax

    • Hello Ikram
      Tax liability will fall on the Legal owner of the property at the time of sale and will be calculated based on Sale value minus index cost of acquisition.I am not sure what have you done to transfer your sister’s share to Mother. if that was registered deed or not. So you need a tax expert/Lawyer in this case.
      If the property was legally transferred to all the heirs, and then sold out, then the tax liability will fall on the respective owner. which can either be saved by investing in the Residential property or by buying 54EC bonds.
      It is advisable to consult a Good CA in your Area and share with him/her all the details to calculate your tax liability.

    • Buying a Commercial property will not help in saving capital gains tax. You either have to buy Residential property or 54EC capital gain bonds to save this tax.

  6. sir i purchased commercial
    shop in 2004 and sold it oct 2018 and i want to purchase new shop within 6 month so sow can i save my ltcg

  7. Please guide me on the issue:

    I have bought the commercial shop in 1998 for Rs. 1,60,000/- and sold on 30/09/18 for Rs. 12,20,000/-.

    The said property i am utilizing as godown and filling the IT Return u/s 44AD so far and as a result the wdv in Balance Sheet in current year is 15,000/-

    Please guide me on tax computation for the same.

  8. Dear Manikaran
    Thank you for a comprehensive website and insightful articles. I have a query on section 54. I plan to sell multiple flats in one city and buy a single flat in GGN. Can I reinvest LTCG from multiple properties into a single flat. Also, I will be holding a single plot or may be 1 plot + flat thereafter. Also, understand from your article above that there is no issue on holding more than one property under section 54.

    • As far as my knowledge goes there is no limit of having properties as far as section 54 is concerned. You can sell Multiple Residential Flats and buy one Residential property to save tax.
      The issues come when you sell non Residential property which comes under section 54F. In that case, you can have only 2 properties in your name.

      Still, this is as per the best of my knowledge. You have to take professional CA’s advice too before taking any decision, as many times I have seen they have a different point of view.

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