Hi sir
Sir i purchased property in 2007 @ 11 lac
Sold in feb 2025 @ 450000
My nett capital gain is 34 lac without indexation and approxy 13 lac with indexation
If i want to buy 54ec bonds than what amount will be invested 34 lac or 13 lac
Ans: You need to invest only the indexed capital gain (approx. Rs 13 lakh) in 54EC bonds to claim exemption under Section 54EC of the Income Tax Act.
Explanation:
54EC bonds exemption is available only on the LTCG (Long-Term Capital Gain) after indexation when selling a property.
Since your indexed capital gain is Rs 13 lakh, this is the amount you need to invest in NHAI/REC/PFC/IRFC 54EC bonds within 6 months from the sale date to claim tax exemption.
Maximum investment allowed in 54EC bonds is Rs 50 lakh per financial year.
Alternative:
If you do not invest in 54EC bonds, you can:
Reinvest the full capital gain (Rs 13 lakh) in another property under Section 54.
Pay LTCG tax at 20% (Approx. Rs 2.6 lakh tax on Rs 13 lakh gain).
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
Asked on - Feb 24, 2025 | Answered on Feb 25, 2025
ListenThanks...
Thats only need a clearty in new Tax systen that bond will be taken for 13 lac or 30 lac
Ans: You need to invest only Rs 13 lakh (the indexed capital gain) in 54EC bonds to claim exemption.
The new tax system does not change this rule. Exemption under Section 54EC applies only to the LTCG after indexation.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
Asked on - Mar 13, 2025 | Answered on Mar 14, 2025
ListenWhats the diff between 194IA(R). And 194IA(P) in tds section
Kindly reply
Ans: Section 194IA(R) and 194IA(P) refer to different aspects of TDS on property transactions:
194IA(R): TDS on the receipt of payment by the seller.
194IA(P): TDS on the payment made by the buyer.
Both sections deal with TDS at 1% on property transactions above Rs 50 lakh.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
Asked on - Mar 15, 2025 | Answered on Mar 18, 2025
ListenHi 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: No, your tax will not become zero.
In the case of debt mutual funds, capital gains are not eligible for exemption under Section 54, which applies only to property sales.
Since you bought in 2017, the entire Rs 25 lakh gain (Rs 75 lakh - Rs 50 lakh) will be taxed as per your income tax slab under the new tax rules for debt mutual funds.
Buying a plot will not give you any tax exemption on debt mutual fund gains.
Best Regards,
K. Ramalingam, MBA, CFP
Chief Financial Planner
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
Asked on - Mar 18, 2025 | Answered on Mar 21, 2025
ListenI bought in 2017....so will I pay 20% Tax after indexation na?
Ans: No, under the new tax rules, indexation benefits are not available for debt mutual funds. The entire Rs 25 lakh gain will be taxed as per your income tax slab.
Best Regards,
K. Ramalingam, MBA, CFP
Chief Financial Planner
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
Asked on - Mar 28, 2025 | Answered on Mar 29, 2025
ListenHi I have bought flat in 1988 @ rs 1 lac And as per cerificate property value is 5 lac in 2001 And ibam going to selll it @ 22 lac in may 2025 then what will be my tax liability on it
Ans: Your capital gain will be calculated using the Indexed Cost of Acquisition (ICOA) based on the 2001 valuation of Rs. 5 lakh. After indexation, the Long-Term Capital Gain (LTCG) will be taxed at 20% after applicable deductions. You can reduce tax by reinvesting under Section 54 (buying another property) or Section 54EC (bonds).
Best Regards,
K. Ramalingam, MBA, CFP
Chief Financial Planner
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
Asked on - Mar 31, 2025 | Answered on Apr 01, 2025
ListenSir what will the long term capital gain amount
Pls calculate
I am waiting
Ans: For a precise tax strategy, please consult a qualified CA one on one to ensure compliance and tax efficiency.
Best Regards,
K. Ramalingam, MBA, CFP
Chief Financial Planner
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment