268 COMMENTS

  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.

  4. HI ,
    i have purchased a plot for 55 lakhs and has given the same amount through cheque to the seller.

    Is there any possibility ways to save the tax for the seller?

    • Hello Mr. Reddy,
      To save capital gains tax on the sale of a plot, the seller needs to purchase a residential plot with the entire sale proceeds or invest the gain amount into capital gain bonds.

  5. Hi,
    I am planning to sell my 2 properties both are residential when purchased later both being used as commercial, Since being used as commercial is it considered as commercial or residential ?
    with this sold amount planning to buy residential old house and will be demolished to construct commercial. Is capital gain applicable ? or how many years I retain this purchased property as residential to avoid capital gain

    • Hello Mr. Murthy,

      As far as we know, if the registration of the property is done as a residential one then it would be considered as a residential property only. And you are buying another residential property only, so the capital gains tax would be saved.
      Still, please consult a tax expert in your area before taking any action.

  6. I want to sell my residential apartment which i purchased twenty five years ago. How can i save taxes on the capital gain which arises?

    • Hello Mr.Raja,

      To save capital gain on the sale of a residential property you either have to buy another residential property within 2 years or 1 year before the sale of property or you may also construct a property within 3 years from the date of sale of the property, from the gain amount.

      The other option is to invest the capital gain in the specified Capital gain bonds available under section 54EC, within 6 months of the date of sale. However, the maximum amount to invest in these bonds is Rs.50 lakhs per financial year.

  7. I also have a commercial property which i purchased in 1998. I want to sell the property. I do not want to reinvest the entire amount in a residential property to claim tax benefits. Is their any other options available. If i transfer the entire amount in a bank under the capital gain account scheme would i get the tax benefits exemption?.

    • Hello Mr. Raja,

      The purpose of depositing the amount in the capital gain account in order to save capital gains tax should be to utilize the amount in the purchase or construction of residential property only, within the stipulated time frame. If you do not use the amount in the purchase or construction of a residential property, you may be liable to pay the penalty for the same along with the capital gains tax due.

      If you do not want to invest the amount in a residential property to gain the full exemption of the capital gains tax the other option you have is to invest the gain amount in specified capital gain bonds of NHAI, REC, and PFC.

  8. Sir, my mother is a senior citizen. She owns a flat in her name which she wants to sell now. She purchased the flat in the year 1996. What are the options under Capital gain, in which my mother can save tax?. If the entire sale amount proceeds is transferred under the Capital Gain Account Scheme in a bank, will it be possible to save tax?.

    • Hello Mr. Raja,

      As stated above, the purpose of depositing the amount in the capital gains account should be to purchase or construct a residential property within the stipulated time frame.

      The options to save capital gains tax remain the same for senior citizens as well.

  9. A residential house was purchased by my mother in 2010. Now in 2022 after the death of my mother this house is transferred in my name. If I sale this house it will be a short term capital gain or long term capital gain.

    • Hi Amrinder,
      Since the house was purchased in 2010, the gains on selling the house would be treated as long-term capital gains.

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