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Sold Property for Profit: How Can I Minimize Taxes?

Vipul Bhavsar |57 Answers |Ask -Follow

Tax Expert - Answered on Apr 04, 2025

Vipul Bhavsar is a chartered accountant from The Institute of Chartered Accountants of India. He has over 16 years of experience in corporate advisory, taxation and financial reporting.
His interest areas are consulting, income tax, GST and due diligence.
He founded his CA firm, V J Bhavsar and Associates, in 2010 through which he offers services like virtual CFO, trademark registrations, company /LLP formation, MIS reporting, audit, tax and TDS compliances, accounts receivable/payable management and payroll processing.... more

Question by narayan on Feb 13, 2025Hindi

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i had purchased flat in 2006 for 3.6 lacs on my spouse name and sold in nov2024 for 14 lacs .money received on spouse name .i pay tax regularly under 30% bracket. spouse does not cross taxable income tax limit. Do i may LTCG tax and option if any to save tax? can I gift this to son or any thing else pl advise?

Ans: You may claim Exemption for Long Term Capital gain

Section 54 - If old asset sold was residential house
New residential house is purchased within 1 yr before or 2 years after the date of sale or constructed within 3 years from date of sale (This house must not be sold within 3 years from date of purchase, if sold entire Tax said saved shall be repayable
Investment amount shall be Long-Term Capital Gain OR Cost of a new asset, whichever lesser

54EC
Purchase of NHAI bonds or RECL bonds, redeemable after 5 years. Maximum sum allowed is Rs.50 Lakhs
Investment to be done within 6 months from date of sale

It is strongly advisable to consult CA to understand tax liabilities
Vipul Bhavsar
Chartered Accountant
www.capitalca.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.

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Hello Sir, I need your advice in sale of flat, Sir, I booked one Under construction flat @ Virar In June 2004 for Rs.17,74,000 and paid Stamp duty of Rs.67,440 and the Registration charges of Rs.17,740 on that , of which I for possession in June 2014, Sir, I sold that flat in June 2023 for Rs.41,50,000/- Sir, how much I m liable to pay LTCG on that and within how much time I have to pay that tax to the Income tax Authorities, as I do not intend to invest in the new property.

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