Capital Gains on sale of residential property

[ANAND SHARMA]

If a person sell his residential property which old and self made and from the proceeds of the same purchased a new commercial cum residential (mix land used built up) property. whether he has to pay the capital gains and how much. Require any option to save the capital gains.

AI Summary

Understanding Capital Gains Tax: Selling Residential Property & Buying Mixed-Use Property; Consider Section 54EC for Tax Savings. A person inquired about the capital gains tax implications of selling a self-made residential property and using the proceeds to purchase a mixed-use property. The response explained that the capital gain is the difference between the purchase cost and sale price, with the possibility of using cost indexation. To potentially save on capital gains tax, the individual could invest in specific bonds under Section 54EC of the Income Tax Act.