Need Expert Advice?Our Gurus Can Help

Tax Implications of Selling Debt Mutual Fund for Plot Purchase?

T S Khurana |436 Answers |Ask -Follow

Tax Expert - Answered on Mar 20, 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

Question by Raj on Mar 13, 2025Hindi

Listen

Hi I am holding debt mutual fund Bought in 2017 for rs 50 lac now current value ia 75 lac If i sell @ invest all 75 lac rs in purchase of plot then is tax become zero

Ans: You may avail exemption u/s 54-F & invest in residential house property, subject to the following conditions :
01. You will have to invest total amount of Rs.75.00 (L).
02. You will have to construct the plot with in a period of 3 years from the date of Sale of MFs.
Most welcome for any further clarifications. Thanks.

Asked on - Mar 20, 2025 | Answered on Mar 22, 2025

Listen

Hi sir Father purchased 2 flat total of Rs 2 lac in june 1985 Now both flat will sell on April 2025 @ 24 -24 each total of Rs 48 lac How capital gain be calculated What will be his tax liability

Ans: 01. Under present provisions of Income Tax Act, you may opt any of the options (in case of Long Term Capital Gains), as under :
02. (01). Tax Rate 12.50% without indexation or
03. (02). Tax Rate of 20% with Indexation (Indexation from 01.04.2001).
04. You may take a Certificate from an Architect of the value of Flats, as on 01.04.2001 & adopt this as Cost of Flats for calculation of LTCGs.
05. You may calculate your tax liability under both options & may opt for the tax regime, where tax liability is minimum.
Most welcome for any further clarifications. Thanks.

Asked on - Mar 23, 2025 | Answered on Apr 04, 2025

Listen

Sir if I get Certificate of Rs 5 lac each flat.. Then what will be the tax? Pls calculate Waiting for reply

Ans: In such a case, your tax liability shall be reduced considerably. Taking Rs.5.00 (L) as Cost on 01.04.2001, your tax payable shall be less with Indexation. It is difficult to provide you exact calculation of tax, since many other factors are involved, like Income from Other Sources, Tax Savings & Other Deductions etc.
I suggest you to proceed with valuation of flat at Rs.5.00 (L).
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.