We have received this comment on blog post BUY HOUSE SAVE CAPITAL GAIN ON SALE OF HOUSE ,I have replied Girish as required but while repl...
We have received this comment on blog post
On investment of 1000000 rs in Bonds ,tax payout will be Nil and we will get interest 60000@ 6.00p a at the year end ,suppose we will invest 60000 interest received at the First year end and second year end @ 9% per annum annually compound rate, we will get at the following amounts at maturity .
- Non eligible for section 54:section 54 is available only if long term asset sold is a residentila house property ,so Gisrish has correctly said that sec 54 is not vailable to him,as he has sold land not a residential house property.
- Non eligible for section 54F:undersection 54F ,person can avail relief from paying long term capital gain tax arises on sale of long term capital asset,if he invest net sale consideration in a house in specefied time ,but he should not own more than one house at the time of transfer of long term asset other than purchased under this section(new house).In this Case Girish owned a house on the date of transfer of the property (land) so he is not correct and eligible for section 54 F
- Capital gain with or without indexation:For sale of land there is no option for calculation of tax without indexation and pay tax at lower rate.
- Tax calculation:
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