Capital gains tax

ANANDAKUMAR K (Querist) 13 October 2016 This query is : Resolved
SIR

I HAVE RESIDENTIAL PLOT FOR SALE AND I WANT TO KNOW WHAT IS THE REINVESTMENT PERIOD ALLOWED TO AVOID CAPITAL GAINS TAX.

ANNADKUMAR K

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Rajendra K Goyal (Expert) 13 October 2016
The long-term gain arising from the sale of a capital asset is exempt under Section 54 and 54F if invested in purchase or construction of a house property subject to certain conditions. To get the exemption, the taxpayer has to purchase the residential house within a period of 1 year before or 2 years after the transfer of the original house. Under construction properties must be completed within 3 years from the date of transfer of the original house. The investment on the house property must be situated in India. This will apply to the assessment year 2015-2016 and for the subsequent years.

Visit following link for details:

http://www.incometaxindia.gov.in/Tutorials/15-%20LTCG.pdf