Home > Money > Question
Need Expert Advice?Our Gurus Can Help
Ramalingam

Ramalingam Kalirajan  |9857 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 20, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
Asked by Anonymous - May 11, 2024Hindi
Listen
Money

I am going to get my portion of the house by inheritance after the partion with my brother. I am going to get around 2 crores as per market valuation from my brother after selling my demarcated area of the house. How to avoid or reduce capital gain ?

Ans: Inheriting the property itself isn't taxable, but capital gains tax comes into play when you sell it. Here are some ways to potentially reduce or avoid capital gains tax in your situation:

Claim Exemption under Section 54:

In India, you can claim exemption from capital gains tax on the sale of a residential property if you use the sale proceeds to buy a new residential property within one year before or two years after the sale.This exemption is available under Section 54 of the Income Tax Act. There's also an overall threshold limit of Rs 10 Cr. for claiming exemption from FY 2023-24 onwards.

Invest in Specified Bonds under Section 54EC:

Another option is to invest in specific bonds issued by government agencies like REC, NHAI, IRFC, or PFC within six months of selling the inherited property. This investment can get you exemption up to Rs. 50 lakh per financial year under Section 54EC

Cost of Acquisition

The capital gain is calculated by subtracting the cost of acquisition from the selling price. In your case, the cost of acquisition for tax purposes will be the fair market value of the property on the date of inheritance, not the price your brother pays you. This can help reduce the taxable capital gain amount.

Consult a Tax Advisor

Tax laws can be complex, and the best course of action depends on your specific situation. It's advisable to consult a qualified tax advisor to determine the most suitable option for minimizing your capital gains tax liability. They can help you navigate the legalities and paperwork involved.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
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.
Money

You may like to see similar questions and answers below

Moneywize

Moneywize   | Answer  |Ask -

Financial Planner - Answered on Feb 22, 2024

Asked by Anonymous - Feb 21, 2024Hindi
Listen
Money
I will be getting above Rs 2 crore from the sale of my grandfather’s property in Darbhanga. How do I invest this amount to avoid paying or minimise capital gain tax and get the benefit of tax exemption?
Ans: Here are some pointers to help you understand the options available regarding tax optimisation and indexation benefits for your situation in India. Remember, consulting a qualified tax advisor is crucial before making any investment decisions.

Capital Gain Tax and Exemptions:

In India, capital gains exceeding Rs 2 crore from the sale of immovable property (like land and buildings) are subject to a 20%

Long-Term Capital Gains (LTCG) tax.

However, you have two main options to avoid paying LTCG tax:

1. Invest in Residential Property:

• You can reinvest the Rs 2 crore or more (up to the total capital gain amount) in a new residential property within India within 2 years before or 1 year after the sale of the old property.
• This reinvestment fully exempts you from LTCG tax.
• Note that the new property must be purchased in your name, your spouse's name, or your minor child's name.

2. Invest in Capital Gain Bonds:

• You can invest up to Rs 50 lakh per financial year in specified bonds issued by the government under Section 54EC.
• This investment will partially exempt the invested amount from LTCG tax.
• The lock-in period for these bonds is 3 years.
• Remember, this option only covers a portion of the total capital gain.

Indexation Benefits:

• Indexation helps adjust the cost of acquisition of the asset for inflation, potentially reducing the taxable capital gain.
• You can use the Cost Inflation Index (CII) published by the government to calculate the indexed cost of acquisition.
• This will reduce your taxable capital gain, potentially lowering your tax liability.

Things to Consider:

• Both options above have specific requirements and limitations. Carefully evaluate your financial goals and risk tolerance before choosing an option.
• Consult a qualified tax advisor to understand the nuances of each option and its impact on your specific situation.
• They can also help you with indexation calculations and ensure you claim the maximum possible benefits.

Disclaimer:

This information is for general guidance only and does not constitute tax advice. Please seek professional advice from a qualified tax advisor before making any investment decisions.

..Read more

Latest Questions
Nayagam P

Nayagam P P  |9520 Answers  |Ask -

Career Counsellor - Answered on Jul 28, 2025

Asked by Anonymous - Jul 27, 2025Hindi
Career
I got 67 percentile in jee mains and sc category rank is 34,240 and crl is 4,84,863 and in jee adv i got a preparatory seat so i didn't get any seat in josaa counselling so my question is, should i hope that i will definitely get a seat in csab counselling or should i go for private colleges? By considering this 2025 jee mains qualified students list
Ans: With an SC category JEE Main rank of 34,240, CRL 4,84,863, and a 67 percentile, the likelihood of securing admission to any NIT, IIIT, or GFTI through CSAB special rounds in 2025 is extremely low for mainstream branches. Recent CSAB closing ranks for SC candidates across most NITs, IIITs, and GFTIs for prominent branches like Computer Science, Electronics, and even core branches such as Mechanical and Civil typically close well below 10,000–20,000 for SC and rarely go beyond 25,000 for the least preferred institutes or branches, including in the final special round. No NIT or IIIT admitted SC candidates for popular branches beyond 30,000 in the 2024–2025 cycle, and even peripheral GFTIs and less sought-after streams had SC closing ranks capped far below 34,000. This trend is confirmed by official CSAB and JoSAA cutoffs, making a government seat in NITs/IIITs/GFTIs for your present SC rank very unlikely, even by the last CSAB round. It is advisable to actively monitor CSAB rounds, but it is prudent not to expect a seat. Focus should shift toward private engineering colleges in Northern India that accept JEE Main SC category candidates with ranks up to and above your level. These colleges provide robust infrastructure, experienced faculty, active placement cells, and are recognized by NAAC/AICTE, ensuring quality education for all reserved category students.

Recommendation: Participate in CSAB rounds since there is no risk, but make timely decisions with backup admissions at private colleges in Northern India, which not only guarantee you a seat but also provide support and opportunity for career advancement.

Private colleges where your SC JEE Main rank of 34,240 is accepted for B.Tech include Chandigarh University, Mohali for Mechanical, Civil, ECE, and CSE. Lovely Professional University, Jalandhar for B.Tech in all mainstream branches. Amity University, Noida for B.Tech CSE, IT, and ECE. Sharda University, Greater Noida for B.Tech CSE and allied branches. Galgotias University, Greater Noida for core engineering branches. Jaypee Institute of Information Technology, Noida for CSE and ECE. ABES Engineering College, Ghaziabad for CSE, IT, and ECE. Indraprastha Institute of Technology & Management, Delhi for B.Tech programs. GL Bajaj Institute of Technology & Management, Greater Noida for CSE. Maharaja Agrasen Institute of Technology, Delhi for core and circuit branches. These institutions are widely regarded for SC campus support and ensure transparent, merit-based JEE Main admission up to your rank, making them ideal and feasible alternatives if you don’t secure a CSAB allotment. All the BEST for a Prosperous Future!

Follow RediffGURUS to Know More on 'Careers | Money | Health | Relationships'.

...Read more

Dr Nagarajan J S K

Dr Nagarajan J S K   |2011 Answers  |Ask -

NEET, Medical, Pharmacy Careers - Answered on Jul 28, 2025

Nayagam P

Nayagam P P  |9520 Answers  |Ask -

Career Counsellor - Answered on Jul 28, 2025

Career
Sir jee me rank 112671 kya csab round me cse with ai,et,ecre,it,data science kya gfti collage me admission mil sakta hi
Ans: Abhishek, With a JEE Main 2025 rank of 112,671, securing admission through CSAB in a GFTI for branches like CSE with AI, Electronics and Telecommunication, ECE, IT, or Data Science is highly unlikely, as most GFTI and IIIT closing ranks for these sought-after programs are well below this cut-off. For context, recent and current CSAB special round closings for top GFTI branches (CSE, IT, ECE, DS, and allied) typically fall between 40,000 and 60,000 for general candidates, with even peripheral branches and institutes not extending to 110,000 for open category seats. Electronics and Telecommunication or Data Science in GFTIs—such as Assam University, Guru Ghasidas Vishwavidyalaya, and BIT Mesra—also show similar cut-offs, and recent trends confirm no IT or CSE+AI admissions for those above 90,000. Opportunities in NITs or IIITs are even more restrictive for your rank in these streams, as confirmed by official CSAB and leading portal analyses. Even with state or gender-based relaxations, 112,671 exceeds all recent CSAB computer/electronics-oriented program cutoffs at government-aided institutes. As a result, it is important to simultaneously prepare for admissions into North Indian private engineering colleges, which routinely accept JEE Main candidates with ranks beyond 100,000 for CSE, ECE, AI, IT, and Data Science, offering robust campus support, placements, and flexible eligibility.

Recommendation: Actively participate in CSAB for any last-resort government vacancy, but prioritize private college options in Northern India where your rank assures confirmed admission in CSE, AI, ECE, IT, or Data Science branches. This approach guarantees you a quality seat and the best fit for your academic future.

Private colleges where your rank of 112,671 is accepted for branches like CSE with AI, Electronics and Telecommunication, ECE, IT, or Data Science include Chandigarh University, Mohali for B.Tech CSE with AI & ML. Lovely Professional University, Jalandhar for B.Tech CSE with AI, ECE, or IT. Amity University, Noida for B.Tech Computer Science, Data Science, and ECE. Sharda University, Greater Noida for B.Tech CSE with AI & Data Science. Galgotias University, Greater Noida for B.Tech CSE, Data Science. Jaypee Institute of Information Technology, Noida for B.Tech CSE and ECE. ABES Engineering College, Ghaziabad for B.Tech CSE and ECE. Indraprastha Institute of Technology & Management, Delhi for B.Tech CSE and ECE. GL Bajaj Institute of Technology & Management, Greater Noida for B.Tech CSE with AI & Data Science. Maharaja Agrasen Institute of Technology, Delhi for B.Tech CSE and IT. All have a strong record for placements, modern infrastructure, and support for JEE Main entrants at this rank, and backup private choices (excluding state-exam seats) include LNCT Bhopal (Delhi campus), Bennett University, and Panipat Institute of Engineering & Technology, all of which admit at your rank for these programs. All the BEST for a Prosperous Future!

Follow RediffGURUS to Know More on 'Careers | Money | Health | Relationships'.

...Read more

Nayagam P

Nayagam P P  |9520 Answers  |Ask -

Career Counsellor - Answered on Jul 28, 2025

Career
Hi sir I got 42101 rank in jee mains 2025 . What are the best college options for me I
Ans: With a JEE Main 2025 rank of 42,101, you have viable options for NITs, IIITs, and several GFTIs through CSAB special rounds, though top branches like Computer Science at core NITs and leading IIITs are out of reach. You can expect to secure branches such as Mechanical, Civil, Production, Chemical, or Electrical Engineering at NITs like NIT Uttarakhand, NIT Sikkim, NIT Meghalaya, and possibly NIT Mizoram or NIT Agartala, as recent CSAB closing ranks for these institutes in non-core branches have extended to and beyond the 40,000 mark. For IIITs, newer campuses including IIIT Kota, IIIT Una, IIIT Kalyani, and IIIT Bhagalpur are probable for branches like Information Technology, ECE, or specialization programs such as Data Science or Artificial Intelligence, as these often saw closing ranks from 30,000 to 45,000 in 2024 and projections for 2025 are similar. Some GFTIs, such as Assam University, North Eastern Regional Institute of Science and Technology (NERIST), and Gurukula Kangri Vishwavidyalaya, regularly admit candidates in this rank range for core and emerging branches, particularly in rounds two and final rounds of CSAB, increasing your odds. Choice of branch and state quota (home/other) will further impact your chance, but CSE, ECE, AI and similarly in-demand programs at high-profile NITs or IIITs will generally remain inaccessible with this rank. It is advisable to keep flexible branch and location preferences and participate actively in all rounds of CSAB to maximize your outcome.

Recommendation: Prioritize NITs like Uttarakhand, Sikkim, Agartala, and IIITs such as Una, Kalyani, or Bhagalpur for Mechanical, Electrical, or IT-oriented branches in CSAB special rounds. As backup, apply to reputable Northern private engineering colleges like Thapar Institute of Engineering & Technology, Chandigarh University, Amity University Noida, Sharda University, Jaypee Institute Noida, Galgotias University, ABES Engineering College Ghaziabad, Lovely Professional University Jalandhar, Indraprastha Institute of Information Technology Delhi, GL Bajaj Institute of Technology Greater Noida, and Sanskriti University Mathura, all of which readily accept JEE Main candidates with 42,101 rank for CSE and allied branches and offer solid placements, infrastructure, and campus support for engineering aspirants in Northern India. All the BEST for a Prosperous Future!

Follow RediffGURUS to Know More on 'Careers | Money | Health | Relationships'.

...Read more

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.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x