Latest Query & Reply

Long term capital gain of Rs. 99 lakh has occurred on account of sale of urban land. For saving tax on long term capital gain the assessee has invested in the property and claimed exemption u/s 54F of Rs. 35 lakh

Kindly advise us to reduce the tax liability on above transaction.

Reply

In order to minimize the tax liability on above transaction after taking exemption u/s 54F, the assessee can invest the fund in RECL or NHAI bonds u/s 54EC provided such investment should be made within six month from the date of transfer of capital asset (maximum deduction allowable is 50 lakh).