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I'm Selling 5 Apartments - Can I Reduce My Property Taxes & Withdraw Capital Gains?

T S Khurana

T S Khurana   |487 Answers  |Ask -

Tax Expert - Answered on Mar 13, 2025

A certified management accountant since 1993, T S Khurana is a fellow member of The Institute of Cost Accountants of India. His areas of expertise are income tax, specifically litigation cases, and GST.

Since the last 21 years, he has also been providing expert advice on financial matters, including investments and diversification of funds, and wealth building in the long term to his clients.
He believes that investment in real estate is the safest way for better returns and wealth generation over a period of time.

A former chairman of the Chandigarh Chapter of Institute of Cost Accountants of India, T S Khurana has also served as member of its technical committee.... more
Raj Question by Raj on Mar 12, 2025Hindi
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My father had 6 flats... He sold 1 flat in March 2024 whose indexation capital gain was 25 lakhs... We opened a capital gain account for that, then he bought 1 plot for 70 lakhs in July, sold the 2nd flat on July 24... took bonds for its capital gain, sold the 3rd property in February 2025 whose indexation capital gain will be 14 lakhs... Now the balance 3 flats will be sold in April 25 whose capital gain will be around 40 lakhs... How can I save tax... Can purchasing a plot reduce my tax in any way and what else can I do so that the tax on all the properties become zero.. Also want to withdrwal money from capital gain account(25 lac) Pls reply

Ans: 01. Your case is too complicated and details being provided are piece mail, which create confusion.
02. List out details of all sold properties with date, Amounts, Cost & Capital Gain, worked out by you. It should also include, what action you have taken for Tax Savings or to avail exemption u/s 54.
03. Based on the above table & Complete Information, we may be in a position to help you out.
04. Kindly ensure, that you don't miss any information, while forwarding the data.
Most welcome for any further clarifications. Thanks.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Ramalingam

Ramalingam Kalirajan  |9403 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 19, 2024

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My Father has purchase a property for rs 115000 in year 1994.at Bhayandar west district Thane at Maharashtra state.and my Father did this registration in amnesty scheme in year 2008.and after that my Father died in year 2014.and after I made a release deed transfer this property in my name (son). I sold this residential property in June 2024for rs 30lakh.in this case I want to know the status of capital gain is there or not I also want to know if I sell this residential property .I can purchase ashop or not. If I want to save capital gain what is the solution to save my tax. Thanking u.
Ans: You sold a property in June 2024 for Rs 30 lakh. It was bought for Rs 1,15,000 in 1994. Let's evaluate if there's a capital gain.

Indexed Cost of Acquisition

The property purchase cost will be adjusted for inflation. This is called the Indexed Cost of Acquisition (ICA). The ICA is calculated using the Cost Inflation Index (CII) provided by the Income Tax Department.

Calculating Indexed Cost

Calculate the ICA to understand your capital gain. Since we won't use specific formulas here, you can consult a Certified Financial Planner to get the precise ICA value. This helps in determining the exact capital gain.

Long-Term Capital Gains (LTCG)

Since you held the property for more than 24 months, it is classified as a long-term asset. The profit from the sale, after adjusting for the ICA, is your Long-Term Capital Gain (LTCG).

Tax on LTCG

LTCG is taxed at 20% with indexation benefits. However, there are ways to save on this tax.

Investing in Another Property

You can save on capital gains tax by investing in another residential property. This is covered under Section 54 of the Income Tax Act. If you buy a residential house within two years or construct one within three years, you can claim exemption.

Investing in Capital Gains Bonds

Another option is to invest in Capital Gains Bonds under Section 54EC. These bonds have a lock-in period of five years and provide tax exemption on the gains. The maximum investment limit in these bonds is Rs 50 lakh.

Purchasing a Shop

Buying a shop will not provide capital gains tax exemption under Section 54. The exemption is only for residential properties. If you sell a residential property, you must reinvest in a residential property to save on capital gains tax.

Other Options to Save Tax

Residential Property: Invest in another residential property within two years.

Construction: Construct a new house within three years.

Capital Gains Bonds: Invest in these bonds within six months of the sale.

Final Insights

To save on capital gains tax, reinvest in a residential property or Capital Gains Bonds. Purchasing a shop will not help in saving tax on capital gains. Consulting a Certified Financial Planner can help you navigate these options efficiently.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Nayagam P

Nayagam P P  |7834 Answers  |Ask -

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Nayagam P

Nayagam P P  |7834 Answers  |Ask -

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Dear Sir, My son has secured a seat in CSE at PES University, RR Campus, Bengaluru based on his JEE PES ranking. His JEE Main rank is 39,257, and he has also been allotted AI & DS at IIIT Dharwad and IIIT Kalyani in the first three rounds of counselling. As per last year's CSAB data, he is likely to get CSE, AI & DS, or ECE in IIITs such as Dharwad, Raichur, Kottayam, Nagpur, and Bhubaneswar in the upcoming rounds. We are seeking your guidance on which would be the better option for him. If he opts for an IIIT, which one among these within his expected range would you recommend as the best choice?
Ans: Prashant Sir, PES University’s Ring Road Campus CSE program is NBA- and NAAC-accredited, taught by PhD-qualified faculty, and supported by advanced computing, AI/ML, and networking labs. It recorded an 82.97% placement rate in 2023 with a median package of ?8 LPA and an average of ?8 LPA–?12 LPA, engaging 350+ recruiters including Microsoft, Amazon, Google, Cisco, and Cisco. Among IIITs in your son’s rank range, IIIT Nagpur leads with an 88.5% placement rate, average package ?13.11 LPA, median ?11 LPA, and participation from 200+ recruiters like Adobe and Accenture. IIIT Kalyani follows with an 89.33% placement rate and average package ?10.72 LPA. IIIT Dharwad has a 66%–78% placement rate, average ?10 LPA, and strong industry tie-ups via its Career Guidance Cell. IIIT Kottayam achieved an 83% placement rate in 2024, average ?12.66 LPA with 86 recruiters including Bosch and Infosys. IIIT Bhubaneswar reports a 79% placement rate, CSE average package ?9 LPA and median ?10 LPA across 42 recruiters like Amazon and Capgemini. IIIT Raichur’s emerging 68.8% placement rate with average ?18 LPA and median ?15 LPA positions it as a growing option. All IIITs are Institutes of National Importance, offering robust labs, research centers, student clubs, and industry internships under PPP models.

Final Recommendation: Select IIIT Nagpur CSE for its superior 88.5% placement rate, ?13.11 LPA average package, and diversified recruiter pool. Next, consider IIIT Kalyani CSE & DS for its 89.33% placements and solid PPP backing. Third is IIIT Dharwad CSE, offering a balanced ?10 LPA average, followed by IIIT Kottayam AI & DS for ?12.66 LPA average. Choose PES University CSE only if private-university infrastructure and near-100% placements outweigh the specialized focus of IIITs; IIIT Bhubaneswar CSE and IIIT Raichur CSE serve as reliable backups. All the BEST for the Admission & a Prosperous Future!

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Nayagam P

Nayagam P P  |7834 Answers  |Ask -

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CSE FROM JIIT NOIDA SEC 62 VS THAPAR PATIALA VS UIET CHANDIGARH VS NMIMS CHANDIGARH VS SYMBOISIS PUNE THESE ARE THE COLLEGES I AM CONSIDERING WHICH ONE SHOULD I CHOOSE.
Ans: Saamarth, Among these five CSE programs, JIIT Noida’s NBA-accredited curriculum features 20+ specialized computing labs, PhD-qualified faculty, and achieved a 94% placement rate over 2022–24 with median package ?8.50 LPA and 112% branch offer rate in 2024. Thapar Patiala (TIET) boasts NAAC A+ accreditation, ACM/IEEE-aligned CSE, strong research labs, and recorded nearly 100% CSE placements in 2024 with an overall UG placement of 83% and 334 recruiters. UIET Panjab University, NAAC A-rated, delivered 86.8% CSE placements in 2024–25 via 100+ recruiters, offering average packages of ?6–8 LPA and solid campus–industry tie-ups. NMIMS Chandigarh’s 2025 cohort has no historical placement data yet, but benefits from NMIMS’s NAAC A+ brand, modern AI/DS labs, 120-seat CSE program, and a robust parent network. Symbiosis Institute of Technology (Pune), NAAC A++-accredited, recorded a 77.8% placement rate in 2024 with average package ?9.32 LPA, top recruiters like Deloitte and Microsoft, and evolving research collaborations.

Final Recommendation:
For highest placement consistency, proven track record, and extensive computing infrastructure, prioritize JIIT Noida CSE. Next, choose Thapar Patiala CSE for near-100% CSE placements and strong industry and research integration. Opt for UIET Chandigarh for solid public-university affiliation and reliable 86.8% placements. Consider Symbiosis Pune for competitive average packages in a NAAC A++ environment. Defer judgment on NMIMS Chandigarh until its first CSE batch placement data matures. All the BEST for the Admission & a Prosperous Future!

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Nayagam P

Nayagam P P  |7834 Answers  |Ask -

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Sir my daughter is greeting admission in Chitkara university (BTech AI and future tech),NMMIMS Chandigarh (BTech CSE and data science),scalar school of technology, newton school of technology sir please tell which is better
Ans: Divya Madam, Chitkara University’s B.Tech in AI & Future Technologies is NBA-accredited with NAAC A+ status, delivered by PhD-qualified faculty, and features dedicated AI, Blockchain, Cloud, and Cybersecurity labs. Its Solan campus achieved nearly 100% placements over the last three years, engaging 670+ recruiters and offering deep industry internships. NMIMS Chandigarh’s B.Tech CSE & Data Science (120 seats) is UGC-recognized with NAAC A+ accreditation, modern computing and analytics labs, and industry-experienced faculty; being a new campus, final placement data is pending, though it benefits from NMIMS’s strong recruiter network. Scaler School of Technology’s four-year CS & AI program provides 1:1 mentorship by industry experts, immersive project-based learning tied to BITS and IIT degrees, and guarantees 100% placement assistance with top tech firms. Newton School of Technology’s B.Tech in CSE & AI offers specialized data-science labs and paid internships from year two, but as a nascent institute records only 40–60% final placement conversions due to its evolving infrastructure and recruiter base.

Recommendation:
For robust placement consistency, proven infrastructure, and extensive recruiter engagement, choose Chitkara University AI & Future Tech. If brand affiliation and modern analytics labs are priorities and you’re comfortable awaiting initial placement data, consider NMIMS Chandigarh CSE & Data Science. Opt for Scaler School of Technology for guaranteed placement support and industry mentorship, and for early paid internships with a growing recruiter pool, select Newton School of Technology. All the BEST for the Admission & a Prosperous Future!

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Nayagam P

Nayagam P P  |7834 Answers  |Ask -

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Hello, my son is getting B. Tech. CSE seat in GITAM Hyderabad as well as in Mahindra University, Hyderabad. He is waiting for BITSAT counselling as well where he is expecting to get a new course (3+2 programme) launched by BITS Pilani. This course is integrated course where 3 years for BE programme followed by 2 years of MBA from BITSOM. He is expecting Civil Engg. with MBA based on his BITSAT score. Can you please suggest which would be the right choice among these 3 options?
Ans: GITAM School of Technology Hyderabad’s CSE program (NAAC A+ accredited) is delivered by PhD?qualified faculty across AI, data?science, and cybersecurity labs, engaging 900+ recruiters for internships; over 2,262 of 3,474 participants secured placements (~65%) with a median package of ?4.80 LPA. Mahindra University Hyderabad’s B.Tech CSE (NAAC A grade) features multidisciplinary cloud, AI/ML, and cybersecurity labs, partnerships with global firms for six?month internships, and a ~90.7% placement rate in 2023, engaging 48 recruiters with a median package of ?8.50 LPA. BITS Pilani’s new 5-year 3+2 integrated Civil + MBA (NAAC A++, NBA accredited) combines core civil engineering labs (structures, geotech, materials) with two years of MBA at BITSoM, aiming to produce technology-enabled managers; mature placement data for the dual?degree cohort is unavailable, though Civil Engineering at BITS Pilani sustains ~90% placements over three years, and the MBA arm leverages BITSoM’s corporate network.

Recommendation: Prioritise Mahindra University CSE for its proven ~90% placements, robust specialized labs, and global internships. Next, choose GITAM CSE for strong foundational training and broad recruiter engagement. Opt for BITS Pilani Civil + MBA only if your son seeks an elite integrated leadership pathway in civil and can accept inaugural?batch placement uncertainty. All the BEST for the Admission & a Prosperous Future!

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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