1. I have purchase a Residensial property jointy with spouse for Rs 1.48 cr in 04 Nov 2019. I tried to sell my existing Flat before purchase , but I can able to get deal. So I paid money from my retirement benefits and fixed deposits. After 10 months I got a slightly better offer and sold my flat in Sep 2020 for 48.75 lakhs lesser than Stamp Duty of 60 Lakhs, because it was 20 year old flat and no one want to offer the circle rate.
    As the acqution cost of flat 10 Lakhs and indexed acq cost is 30 lakhs. and LTCG considering 50C will be 60 – 30 = 30 lakhs. 10 months earlier I have purchase New property jointly with Spouse for 1.48 Cr with 50 % share come to 74 Lakhs. I want to save the LTCG of 30Lakhs by showing the investment done 10 months earlier for Rs 74 Lakhs. I hope this will be leagaly correct. please answer.

    • Hello Mr. Vijay,

      According to section 54, you can save capital gains tax if you have purchased a residential property before 1 year of the sale of another residential property. Since you have purchased the residential property 10 months from the date of sale of the flat, as per our understanding, you can save the tax on the entire capital gain on the sale of the Flat. However, please consult your CA for the confirmation of the same.

  2. I am planning to sell my commercial property for around Rs. 15 lakhs . I already own 2 residential property in my name.
    How can i save LTCG.

    • Hi Manish,
      As per the provisions of the law, since you already own two residential properties in your name, you may not be able to save capital gains tax on the commercial property by investing in another residential property. In order to save capital gains tax, you need to invest the gain amount into Capital Gain Bonds, under section 54EC. However, please consult a good CA or any tax expert, before doing any transaction.

  3. I have sold a commercial property but the payment of the property will be done after i purchase the residential property.Will this be eligible for section 54 f(c)

    • Yes, you may be eligible for capital gain exemption under section 54. Still please be in touch with a CA or any tax expert before taking any action.


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