I sold my property at Nagpur during November2023 for Rs.44.5lacs. Rs 40k was paid towards brokerage. Iam planning to invest the money either in Real estate or some tax saving bonds during the current financial year.Now, will this amount has to be reported as income for FY2023-24 and tax to be paid even though a 2 year indow is available for reinvesting ?

Ans: You need to understand the following things about taxation of your flat:-
1. You have earned a profit (called capital gains in this context) on the sale of your house. So tax is due.
2. However, tax will not simply be 31L – 8.5L. The Govt gives you an advantage of inflation over the years which increases your purchase cost through a process called ‘Indexation’, thus decreasing your tax. Please google and read up on it, or contact a good CA or a financial advisor.
3. You also get credit for registration and stamp duty charges, brokerages paid as also any improvements done in the house of a permanent nature.
4. Please read up on Income Tax Section 54 which also gives out how you can save tax on your final capital gains arrived at.
5. The entire calculations and sale/purchase details have to be shown in the ITR. Most probably you will be filling ITR-2 for this next year but please ascertain the same when you are about to file the tax since rules keep changing.

Ans: You will have to pay LTCG on old property sale @ 20% with indexation which would ~7.6L

Sec 54F benefits are applicable for second property. Since you already have 4 properties in your name I believe you won't be eligible to claim benefit from LTCG accruing out of MF sale transferred to acquire RE property, however suggest you seek alternate opinion from CA.

Ans: 1. Income from capital gain is required to be offered to tax in ITR. Subject to certain conditions, it should be offered to tax in which possession is given to buyer.


2. Exemption will be available only if you invest in specified bonds and not by investing in FD

Ans: You have to show your LTCG for plot sold in June-2024, in the ITR to be filed for F/Y-2024-25 (A/Y-2025-26).
Most welcome for any further clarifications. Thanks.