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.
Individual Seeks Tax Exemption on Rs 35 Lakh LTCG; Invests in Flat and Considers Section 54EC Bonds for Balance. An individual sold a house after five years, generating a long-term capital gain (LTCG) of Rs 35 lakhs. To claim a capital gains tax exemption, they invested Rs 30 lakhs in a new flat and inquired about investing the remaining Rs 5 lakhs in capital gains bonds. A respondent advised that to avoid taxation, the Rs 5 lakhs should be deposited in a Capital Gains Scheme account for construction purposes, and bonds under section 54EC must be purchased within six months of the sale, not exceeding three years. The individual expressed gratitude for the guidance. (AI Summary)
TaxTMI 
TaxTMI 
