Capital gains Query

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  1. G.M

    G.M New Member

    I am a 30% tax payer,professional,,bought a land in may 2007 for 3.3 lac.....Sold it in april 2014 for 16.31 L.
    *Whats the capital gain tax to be payed and when shall I pay it !
    *Suppose I should buy Capital gains bonds, when can I buy it?.Can I keep the money in S/B account till then?!
    *I allready have a residential property,can I buy another house to save c.g tax and how fast should I buy that?! Can I keep the money in S/b acct till then?!
    *In a three year period which is better,pay the tax and invest the money in a 9.5% profitable investment and pay 30% tax,or lock in bond and pay the 30% tax?!
    Who can help me.....Thanx...
     
  2. Karan Batra

    Karan Batra Well-Known Member

    1. The Cost Inflation Index for 2014 has not yet been announced by the Govt and therefore no-one can compute the exact Capital Gains in this case. However, it is expected to be around 10.30 Lakhs (approx). Exact would ascertained only once the Cost Inflation Index for 2014 is announced.

    2. Long Term Capital Gains are taxable @ 20% irrespective of your Income Tax Slab Rate (which currently is 30% in your case)

    3. It is always better to avail Capital Gains exemption by investing in specified instruments as compared to paying tax on the same.

    4. Capital Gains Bonds are required to be purchased within 6 months from the date of Sale. You can keep this money in your SB Account

    5. Yes, you can buy another Residential Property in the next 2 years

    For more on Capital Gains Exemption, kindly refer: http://www.charteredclub.com/section-54/
     
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