Dear Tax Payer,
(1) Any amount you spend for construction of your villa out of the sale consideration AFTER THE DATE OF SALE OF LAND (July 2016) ONLY eligible for 54F exemption.I understand that you had already paid this to the builder. Hence, you are not eligible for claiming exemption u/s 54F.
(2) Due to the above point, keeping unutlised amount to 'Capital Gain A/c' will not serve any purpose.
(3) The ONLY WAY TO SAVE TAX is to invest in 54EC Bonds within 6 months from the date of sale. Please do it at the earliest to avoid the last minute rush. You can invest upto 50 Lakhs. It has a lock-in period of 3 years.
(5) If you invest 50 Lakhs in 54EC bond, your capital gain tax would be 20% on 8.8 Lakhs (58.80 Lkahs-50 Lakhs).
CA. Rajeev P T, BBA, ACA, ACS
*****This Opinion is based on stated facts and the legal position as on date. The views expressed may not be relevant where there is any change in facts or law. This Opinion is not in the nature of an assurance that an alternative view or interpretation cannot emerge