Please Help: INCOME TAX
Posted Date : 03-Apr-2012 , 11:35:06 am | Posted By: Bijender Singh
Category :
Income Tax | Answers :
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HOW TO SAVE MY LONG TERM CAPITAL GAIN ON HOUSE PROPERTY AS WELL AS OTHER PROPERTY |
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Answers:
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 Answer by: Lavina Bajaj |
| in order to save long term capital gain refer section 54 of income tax act 1961 which says the LTCG will be exempt from tax it the sale proceeds are reinvested in some residential property within 2 years of sale..
in case of any other LTCA refer section 54F which says Subject to the provisions of sub-section (4), where in the case of an assessee being an individual or a Hindu undivided family, the capital gain arises from the transfer of any long-term capital asset, not being a residential house (hereafter in this section referred to as the original asset), and the assessee has, within a period of one year before or two years after the date on which the transfer took place purchased, or has within a period of three years after that date constructed 842a , a residential house (hereafter in this section referred to as the new asset), the capital gain shall be dealt with in accordance with the following provisions of this section, that is to say, - (a) If the cost of the new asset is not less than the net consideration in respect of the original asset, the whole of such capital gain shall not be charged under section 45;
or the best remedy is to invest in bonds specified under sec 54E which says that within 6 months of sale invest the proceeds in bonds upto 50 lacs..
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