I sold a property and earned a Capital gain of around 16 lakhs. Please advise what all can I do to avoid my Capital Gain Tax.I don’t Want invest in Another property.I want to en cash my gain without paying tax.Please advice.

 

  • HMT 9:07 am on March 13, 2010

    Capital gains on transfer of long-term capital assets invested in specified assets (bonds) are exempt u/s 54EC.
    From 1.4.2006, investment can be made only in notified bonds of NHAI and REC.

    You can open a Capital Gains Account Scheme in banks where it is available.
    Deposit your capital gains in this account. You have to utilize this amount within 2 years for purchasing a house or within 3 years for constructing a house from the date of sale.
    If this deposit is utilized for the specified purpose within the specified period then no advance tax is required to be paid on the gains.
    The deposit in the CGAS has to be made by the investor before the last date of filing his ITR for the relevant year.
    In case you do not wish to invest the gains in property, then the first day of paying advance tax is 30th of September.

    You have only 3 options:
    Invest Capital Gains in 1) Notified Bonds 2) New property.
    Pay tax @ 20%

  • ShivA 9:07 am on March 13, 2010

    You invest with in 6 month from the date of transfer of property whole of your considertion received in NHAI or RECL bonds. the locking period is 3 year. You get rebate u/s 54EC of Income Tax Act, 1961

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