Yes you can utilise the amount in purchase of bond and property and can save the tax liability.
Capital gain
Hello, I recently sold a property and my long term capital gain is 1.08 CR. I am an individual and not a joint party. Is it possible that I invest 50 lakhs in capital gain bonds and use the remaining 58 to purchase a property? Will I be exempted of the tax then?
Asked 6 years ago in Taxation
First answer received in 10 minutes.
Lawyers are available now to answer your questions.
14 Answers
Yes, it is possible.
Is it property sold value or long-term capital gain.
Because long-term capital has to calculate by Index formula.
It is long term capital gain after calculations. I am planning to invest 50 lakhs in bonds and rest in the property. Can I do both at the same time and will it result in any kind of income tax or anything?
Asked 6 years ago
Yes you can invest in both there won't be any tax.
No, you can invest in both the ways its your own rights.
- You can avial full exemption, i.e entire capital gains after investing in purchasing of a new property.
- If, you will not invest the amount in purchasing or construction of a house , then the amount not invested is Chargeable .
- Yes. you can save Long Term Capital Gains tax after investing it in Notified Bonds i.e the bonds which usually issued by government bodies such as Rural Electrification Corporation (REC) and the National Highways Authority of India.
Good luck and dont forget to rating positively.
you can invest your long-term capital gains in certain bonds—issued by National Highway Authority of India, Rural Electrification Corporation, Indian Railway Finance Corporation and Power Finance Corporation. You can invest a maximum of Rs 50 lakh in these bonds and investment should be made within six months from the date of sale. These bonds have a lock-in period of five years.
You can invest balance amount in bonds
You can do both to save tax
Yes. It can be done. You can invest part amount in purchase of a property and the remaining in capital gain bonds in order to save capital gain tax.
You can invest the gain in certain specified bonds to claim tax exemption and the proceeds needs to be invested within6 months of the date of sale of the asset. REC (Rural Electrification Corporation) and NHAI (National Highways Authority of India) are the bonds eligible under Section 54 EC.
Yes you can invest in bonds and property at same time and save long term capital gain tax.
yes you can split the same. its important you invest the entire capital gain
You can invest in both
You can invest in the national bonds as well as in the property you would like to purchase.
You can claim exemption under section 54 and 54F of income tax act.
Yes you can invest your latch amount in the manner proposed by you.