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Financial Planner - Answered on Oct 11, 2022

Anil Rego is the founder of Right Horizons, a financial and wealth management firm. He has 20 years of experience in the field of personal finance.
He’s an expert in income tax and wealth management.
He has completed his CFA/MBA from the ICFAI Business School.... more

Question by Ravindra on Oct 11, 2022Hindi

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Dear Sir, I shall be thankful to you if you can give your valuable answer for my following query.

1. I sold a piece or part of my residential plot to someone, say A in Financial Year 2021-22. From the gains of such sales, I purchased Capital Gain Bonds -- 54EC to lessen my Capital gain tax for FY 21-22. I know that the maximum amount of purchase of capital gain bonds limits to Rs 50 lakh in a Financial Year.

2. Now I intend to sell the remaining part of my residential plot to someone, say B in this Financial Year 2022-23. Can I purchase once again the Capital Gain Bonds in this year 2022-23 also from the sale amount to minimise my capital gain tax for FY 2022-23?

Kindly clarify at the earliest. Waiting for your reply.

Ans: Since you are having separate sale deeds, they will be treated as separate sales. You can invest the capital gain to 54EC bonds as they are in different financial years.

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Question by Ravindra - Sep 07, 2022Hindi

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Dear Sir, I shall be thankful to you if you can give your valuable answer for my following query. 1. I sold a piece or part of my residential plot to someone, say A in Financial Year 2021-22. From the gains of such sales, I purchased Capital Gain Bonds - 54EC to lessen my Capital gain tax for FY 21-22. I know that the max amount of purchase of capital gain bonds limits to Rs 50 lakh in a Financial Year. 2. Now I intend to sell the remaining part of my residential plot to someone, say B in this Financial Year 2022-23. Can I purchase once again the Capital Gain Bonds in this year 2022-23 also from the sale amount to minimise my capital gain tax for FY 2022-23? Kindly clarify at the earliest

Ans: Yes, you can claim tax exemption on sale of residential plot by investing capital gain amount in specified bonds within 6 months of transfer of plot subject to upper limit of Rs 50 lakh of FY 22 23 and other specified conditions.

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Sir, if my capital gain after indexation for sale of residential property in current financial year is Rs 67 lakh, can I invest Rs 50 lakh in tax saving bonds this year, deposit Rs 17 lakh in capital gains account, and deposit the remaining in tax saver bond from that account in the next financial year? Please advise.

Ans: No, to avail the benefit of specified bonds, Investment must be made within 6 months from date of transfer of asset (i.e. residential property) and maximum exemption of Rs 50 lakh is available.

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