clarification for advance tax on capital gains

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  1. vijayaram

    vijayaram New Member

    a 1/3rd share of a property was sold by a senior citizen and her son(one sale deed was executed by the two together) on the last day of sept 2014. the sale was for an inadequate consideration of 20L. but the stamp duty has been paid for the market value which is 50L. initially they were told that they have to pay capital gains tax becasue the property was a very old one. and now they are asked to pay advance tax before 15th march. the senior citizen has no other income and her son is a very meagre income earner because of his illness. kindly let us know how much of advance tax to pay, capital gains tax to pay. but they want to reinvest the inadequate consideration they received in a flat. is it possible? please help them.
    Gurbaksh likes this.
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    If you reinvest your Capital Gains in another Residential Property or Bonds, you can claim exemption from payment of Capital Gains Tax under Section 54/ Section 54EC.

    If you reinvest the sale proceeds - No Capital Gains Tax would be levied.

    And when No Capital Gains Tax would be levied, you wont be required to pay the Advance Tax as well :)
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