Capital gains oncomercial plot

gajraj chandel (Querist) 05 October 2011 This query is : Resolved
what sort of plot i should purchase to save Capital gain after selling commercial plot before holding it for less then three years and what will the tax be in % . can i invest in agriculture or residential land .

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prabhakar singh (Expert) 05 October 2011
You do any thing ,if holding period is less than 36 months you will have to pay SHORT TERM CAPITAL GAIN TAX.

Raj Kumar Makkad (Expert) 05 October 2011
I do agree.

R.Ramachandran (Expert) 05 October 2011
Dear Mr. Gajraj,
Only when the immovable property is held for more than 36 months, the same will be treated as Long Term Capital, and the benefit of indexation of cost of acquisition and improvement is available. In the facts revealed by you, since you will be holding the property for less than 36 months the gain will be treated as Short term capital gain and is fully chargeable to tax with no exemption whatsoever.

Shailesh Kr. Shah (Expert) 05 October 2011
I agree with Shri R. Ramachandran and Tax to be pay Progressive slab rates.

ESTHERPRIYA (Expert) 11 October 2011
If you invest the money in residential plots and building the said proceeds no capital gain tax will attract you.

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