Capital Gains

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  1. g.sivaram

    g.sivaram New Member

    I would like to know what will be the amount of capital gains applicable in the following case:

    I have been gifted a plot by my mother and have given it for development and will get one flat for it. Suppose I sell the flat, what would be the tax implication for me. Will it be considered for capital gains tax or short-term gains tax. The gifted plot is one year old.
     
  2. Neha Sharma

    Neha Sharma Active Member

    If you sell the flat, the period for which the flat was held by your mother would also be considered. So, if your mother held the plot for more than 2 years and you have already held it for 1 year - it would be considered as more than 3 years and therefore Long Term.

    Moreover, the Cost of Acquisition and the Cost of Improvement would also be considered.
     
    g.sivaram likes this.
  3. g.sivaram

    g.sivaram New Member

    My mother had held it for 3 years and before that my father for 10 years and then gifted it to my mother, who in turn has gifted it to me.
     
  4. Neha Sharma

    Neha Sharma Active Member

    Ya, so in that case - it would be Long Term Capital Gains
     
  5. g.sivaram

    g.sivaram New Member

    Thanks. One more doubt is that after investing the capital gains for 3 years in capital gains tax saving bond, can we withdraw the whole amount and invest it in MIS or FD with the normal prevailing interest in Banks?
     
  6. Neha Sharma

    Neha Sharma Active Member

    Dear @G. Sivaram

    Yes, after 3 years you can withdraw the amount from the Capital Gains Tax Saving Bond and invest it anywhere (like MIS, FD etc)
     
  7. g.sivaram

    g.sivaram New Member

    Very much thanks for clearing my doubts.
     
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