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Sold a house and bought a plot: Can I save capital gains tax?

Samkit

Samkit Maniar  |180 Answers  |Ask -

Tax Expert - Answered on Feb 04, 2025

CA Samkit Maniar has eight years of experience in income tax, mergers and acquisitions and estate planning.
He has graduated from Mumbai’s N M College of Commerce and Economics and has completed his CA from The Institute of Chartered Accountants of India."... more
SANDESH Question by SANDESH on Sep 03, 2024Hindi
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Sir , Recently I have sold one house registered in my name. I have got 1 cr from the transaction. Now i have got one running home loan of around 70 lakhs. Suppose if i repay the existing home loan from the amount obtained , whether i can save capital gain tax. or if i purchase one plot using some part of the amount (for eg: 30 lakhs) , how much capital gain tax i have to pay. The house which i have sild purchased for 7.5 lakhs in 2003. Kindly enlighten me regarding this

Ans: Please note that capital gains exemption is available only upon acquisition of a new residential house property (if the same is within the time limit).

Purchasing a plot will not help in saving capital gains tax.

When did you acquire the house where you have the home loan running needs to be considered? Please let me know that to answer this question appropriately.

In any case you have an option to reinvest the amount in 54EC bonds to the extent of INR 50 lacs and save the capital gains to such extent. The tax will need to still be paid.

Please consult your CA once before proceeding. 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.
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Radheshyam

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My son has got 91 percentile in the recent jee exam , he has next attempt in april, but i feel its difficult for him , can i know about other good colleges in karnataka , as im based their. interested in computer science and aeronautical degree, also advise some recent good courses for his career in india.
Ans: Hello Manoj.
Do not get stressed at this stage. Even though his score is 91 percentile in 1st attempt, he can do well in 2nd attempt. But from the safer side, ask him to appear in the Karnataka State Engineering Entrance Examination also. Even if he scores less in JEE on 2nd attempt, he may good college via the state entrance examination in CSE or aeronautical engineering as per your wish. For your reference, there are 10 colleges in India where you can get admission without a JEE score. To know more details, please copy and paste the following link into your browser- https://timesofindia.indiatimes.com/education/news/10-engineering-colleges-in-india-for-pursuing-btech-without-jee-main-2025-score/articleshow/118162587.cms.
There are no such courses to be called as recent. The choice of courses depends upon the interest of your son. Hence there is no need to hurry and get into panic at this stage. Let him appear for both exams first, Ask about his interests, and then choose the course accordingly. I would be happy to suggest you after knowing his scores in JEE+State entrance + his liking.
Till then, ask him to focus only on two engineering entrance exams. Best of luck to your son for upcoming exams.

If satisfied with the reply, please like and follow me, else ask again.
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