Capital gains tax on self constructed property

Sir in the present case you and your mother will sell the Property as legal heirs. Thus if you invest the capital gains for purchase of property in both names then you can save capital gains tax. It should be purchased within 2 years of transfer but you need to invest the amount in capital gain account scheme till the date of purchase.

Hello Sir,

In Order to derive the capital gains could you please provide the year in which the land was purchased, cost of purchase of land, cost of construction of land.

for the purpose of making final working of capital gain we need details of the purchase value of the property.

Also you can save the capital gain by investing in

- New Residential house property

- 54EC bonds i.e.NHAI / REC Bonds

Dear Sir,

In order to arrive at capital gain we need following details:

a. year in which the land was purchased,

b. cost of purchase of land,

c. cost of construction of land.

In order to save capital gain you can invest the capital gain amount in following :

a. New Residential house property - within 2/3 years of sale but dont foreget to put the moeny in CGDS account before filing of return of income.

b. NHAI / REC Bonds - within 6 months of sale

Please feel free to call/revert in case of any doubts

Thanks and Regards

Abhishek Dugar

CA CS B.Com

Hi,

If you have proper records of the Construction cost, then the same can be taken as cost of the property and indexed value be calculated accordingly. Difference between sales proceeds and the indexed costs will be the Long-term capital gains in your mother's hands.

You can claim tax exemption by either buying or constructing another house (As per the provisions of Section 54) or invest in Capital Gain Bonds notified u/s 54EC

You can invest the long term capital gains component in capital gains bonds u/s 54EC and hold it for 3 years. You can take back your money after 3 years. Tax free and less complicated for you.

Invest the money within 6 months or on or before the due date of filing of your return.

Hello Sir,

You will have to derive the Indexed Cost of Acquisition first in order to derive the Long Term Capital Gain first.

Could you please provide the Cost of Acquisition in order to derive the same.