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samuel (data entry operator)     06 August 2021

Tax on sale of land


     I have no proper house. I want to build a new house in a vacant land by selling another land in town limit. It is likely to fetch Rs.14 lakh. Is it taxable. If so can I avoid paying tax by putting some amount in bank fixed deposit. How much will I have to put in bank fixed deposit to avoid paying income tax. Please help.


 2 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     06 August 2021

You can avoid tax burden by doing the following. 

you can substantially reduce it by using one of the following methods:

  1. Exemptions under Section 54F, when you buy or construct a Residential Property. ...
  2. Purchase Capital Gains Bonds under Section 54EC. ...
  3. Investing in Capital Gains Accounts Scheme. ...
  4. Purchase Capital Gains Bonds under Section 54EC.

Neha Sharma (Student)     05 January 2022

If you sell a plot of land to construct a house, exemption can be claimed under Section 54F and the capital gains will get exempted from the levy of tax

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