Sir I purchased a plot valued rs.110000 in 1998 ,now I have to sale this for rs 700000. How much tax on this transaction? How to save the tax?

Ans: It is advisable to take valuation report from approved valuer who will make report considering ready recknor value decided by concerned gov authorities as on 1 4 2001. Sale consideration reduced by indexed value of FMV as on 1.4.2001 will be capital gain.

To save tax, you can acquire house property and get exemption u/s 54F. As per section 54F, if you want to buy a residential house property from long term capital gain from sale of shares then you must buy the residential house property 1 year before or 2 years from date of such transfer of shares or construct the house property within 3 years from date of transfer of such shares. If amount can not be utilised before filing return then amount should be kept in CGAS.

Ans: LTCG Capital Gain Exemption Options Amount of Investment Amount of Exemption

1 Buying New Flat 1 year before of within 2 years from the date of Sale Total Capital Gain Total Capital Gain

2 Construction of New Bunglow/House etc. Within 3 years Total Capital Gain Total Capital Gain

3 Bonds of NHAI, REC for 5 years within 6 months Total Capital Gain Total Capital Gain
Maximum amount Rs.50 Lakhs