Tax Implication on univested amount - Indian Real Estate Forum

Titust · 19-01-12

Hi,

I require a few clarifications on the tax implications with respect to univested portion from sales of property.

Is it necessary to invest in a single property or flat to claim tax exemption? Or, can we invest in multiple residential plots or flats?
The balance amount, after investment in residential land etc is taxable at what percentage?
Any other points to be considered while reinvesting.

stinaikar · 20-01-12

I believe the balance amount should be taxable at 20% capital gains rate. I believe you can also invest the balance in certain specific investments such as National Highways authority bonds if you don't want to get charged capital gains. But check with a tax expert

Titust · 21-01-12

Thank you Stinaikar!!. The issue is with investing in multiple properties. I get conflicting opinions on this. Some say we can do it, while others say it is not possible.

ashugupta83 · 21-01-12

Hi Friend,Govt has made it mandatory to invest in one single Residential property only in case of a Long term Capital gain,the uninvested amount will get taxed at 10% flat or 20% with indexation...or it can be invested in above mentioned bonds....

Titust · 24-01-12

Thank you ashugupta83!! You gave me exactly what I was looking for. IS there any other suggestions on this one.

ashugupta83 · 24-01-12

Pleasure is all mine....just take care that you invest the capital gain before 6 months of sale or the financial year end whichever is earlier...for any other query you can mail me at ashu.gupta@triveniproperties.co.in
regards

19-01-12	#1
Titust New Member Join Date: Jan 2012 Location: Chennai Posts: 4 Thanks: 1 Thanked 0 Times in 0 Posts	Tax Implication on univested amount Hi, I require a few clarifications on the tax implications with respect to univested portion from sales of property. Is it necessary to invest in a single property or flat to claim tax exemption? Or, can we invest in multiple residential plots or flats? The balance amount, after investment in residential land etc is taxable at what percentage? Any other points to be considered while reinvesting.

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20-01-12	#2
stinaikar Member Join Date: Sep 2011 Posts: 212 Thanks: 3 Thanked 15 Times in 13 Posts	I believe the balance amount should be taxable at 20% capital gains rate. I believe you can also invest the balance in certain specific investments such as National Highways authority bonds if you don't want to get charged capital gains. But check with a tax expert

21-01-12	#3
Titust New Member Join Date: Jan 2012 Location: Chennai Posts: 4 Thanks: 1 Thanked 0 Times in 0 Posts	Thank you Stinaikar!!. The issue is with investing in multiple properties. I get conflicting opinions on this. Some say we can do it, while others say it is not possible.

21-01-12	#4
ashugupta83 New Member Join Date: Jan 2012 Posts: 3 My Mood: Thanks: 0 Thanked 1 Time in 1 Post	Hi Friend,Govt has made it mandatory to invest in one single Residential property only in case of a Long term Capital gain,the uninvested amount will get taxed at 10% flat or 20% with indexation...or it can be invested in above mentioned bonds....

24-01-12	#5
Titust New Member Join Date: Jan 2012 Location: Chennai Posts: 4 Thanks: 1 Thanked 0 Times in 0 Posts	Thank you ashugupta83!! You gave me exactly what I was looking for. IS there any other suggestions on this one.