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LTCG on sale of old house., Income Tax

Issue Id: - 3632
Dated: 8-12-2011
By:- Reddy S.R.

LTCG on sale of old house.


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Dear sir,

I have sold my 5 years old house on 19/11/2009 and booked LTCG of Rs35 Lacs.To avail Cap.gains tax exemption,I booked a flat for Rs 30 Lacs.To avail full exemption,can I buy Cap.Gains Bonds for the balance of Rs 5 Lacs at the end of 3 years period allowed for construction? Please clarify.Thanks.

Reddy S.R.

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Showing Replies 1 to 2 of 2 Records

Page: 1


1 Dated: 8-12-2011
By:- malhar shenoy

To avail the exemption from Capital Gain , the house to be purchased within 3 years subject to condition stipulated under section 54. in the above referrred case the balance of Rs 5 lac not utilised for the purchase will be taxable as LTCG.

To avoid the tax the amount can be deposited in Capital Gain Sheme a/c in the bank , for the purpose of utilising the same for contruction only . so the bond specified u/s 54EC  has to be purchased within 6 month from date of transfer. and in no case beyond that date or end of three year.


2 Dated: 8-12-2011
By:- Reddy S.R.

Dear Malharji,

Thank you very much for your prompt reply to my query.

Reddy S.R.


Page: 1

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