Purchased a land at Ranchi,Jharkhand in 2007 for Rs 85000 , got the land developed by a real Estate functionary and got a residential flat of 1950 sq feet in return and sold about 650 sq feet of this for Rs 860000 in 2018.Indexation comes to about 192000. 1. Can I deduct the sum that I spent on further development of the rest part of flat from the taxable income? 2. Can I use the taxable income for development of my another residence in which I actually live? 3.Which bonds can I buy from the taxable income to save the tax?
How do I show my Capital Gains tax payment in my ITR?
1. No, you cant deduct the same.
2. You can use it whatever way you want if you are ready to pay taxes. If you want to get an exemption, then you will have to buy a new house or construct a new house.
3. You can buy REC/NHAI bonds.
Please feel free to call/ revert in case you need more clarity.
Thanks and regards
Abhishek Dugar
CA CS B.Com
Hi,
Please find below response to your queries:
1. No.
2. You can but you will not get the exemption from capital gains taxes.
3. You can buy specified bonds (REC/NHAI ) in order to save taxes.
Regards,
Nikhil.
1) That would be considered as cost of the remaining part and not deductible from the current taxable income.
2) You can use the capital gain but you you would not be entitled for exemption and you need to pay tax on that.
3) REC/NHAI but maximum investment upto Rs. 50 lacs.
No you cannot deduct the amount from taxable income.
You can use the taxable income the way you want but you have to pay capital gain tax on the same.
Investment in specified bonds ie REC/NHAI can be done for claiming exemption .
