Recently I sold my property. I have taken a loan from bank to purchase new flat. I invested 5 lac from the proceeding in the new property for which I have got possession another 3.5 lac are required to be invested , can I invest this in my flat for woodwork , electrical fitting etc. If not where I can invest the same money?
Bhupinder-Whether your concern is taxation or how to utilize this sales proceed properly?
my query is about taxation ?
Bhupinder-If your query is related to Sec.54 of IT act, and also if the same works are not part of acquisition from builder, then you can show them as cost of acquisition of new property.
The work i am referring to is the extra fitting which i will get it done . these are not being supplied by builder.
Bhupinder-Then you can’t show that expenses as it will be part of property acquisition.
can you please advise to avoid long term capital gain of rs 3.5 lac
Bhupinder-No special ways but to either park money in Capital Gains Account Scheme (CGAS) or specified bonds under section 54/54EC. Also, read the conditions like within how many days of sales proceed you have to invest and the lock-in period.
Thanx a lot for your prompt & valuable reply