Regarding Capital Gains Scheme?

Question

My Grandmother inherited a property from her father by way of settlement in the year 1963 now (jun 2008 )she sold that property for a huge sum of Rs1,19,80,000 its guideline value in 1.4.1981 was 260000 .She owned another property a residential house which was recently transferred to my father in Dec 2006.My CA says I can invest the Capital Gains in Bonds In NHAI,REC,Rural Bank ,For What period should I have the bonds.So what are my options in investing in capital gains scheme other than the Bonds.Our CA says that the seller should not own any other property is it true because I get different answers from different people , i am completely confused I need help Or at least guide me to some Qualified Personnel in this field.Thank You in Advance...

Answer 1

Read about long term capital gains

http://mytaxes.in/index.php?board=12.0

Also read about various deductions available on capital gains

http://mytaxes.in/index.php?topic=31.0

Answer 2

Understandidng that your grandmother and father are alive. And if it is then the burden of capital gain tax and re-investment lies on their respective head and you have nothing to do. In case both are no more than you are right to worry. In case your grandmother is not alive and your father is alive then entirely  your father's burden.

Your CA has advised you rightly but seems you preferred not to go parallel  with him.  As of now no option is better than NHAI, REC, Rural Bank to make investment of the Capital Gain or total proceed of the sales value. The lock in period is minimum five years.

You can make investment of entire sale value or sale value minus indexed cost i e. net profit. Some are investing even without earning capital gain.

All citizen have the fundamental right to acquire any property or can buy entire city provided sellers are okay and you pay the Govt. Fees and Taxes as per Rules.

Answer 3

Understanding that your grandmother and father are alive. And if it is then the burden of capital gain tax and re-investment lies on their respective head and you have nothing to do.  In case your grandmother is not alive and your father is alive then entirely your father's burden. In case both are no more than you are right to worry.

Your CA has advised you rightly but seems you preferred not to go parallel with him. As of now no option is better than NHAI, REC, Rural Bank to make investment of the Capital Gain or total proceed of the sales value. The lock in period is minimum five years.

You can make investment of entire sale value or sale value minus indexed cost i e. net profit. Some are investing even without earning capital gain.

All citizen have the fundamental right to acquire any property or can buy entire city provided sellers are okay and you pay the Govt. Fees and Taxes as per Rules.

the first deciding step here is whether u r a regular tax payer or not.but u hav no option but to invest in any NABARD/NHL/RBI bonds as in that case only u r eligible to claim  exemption to d extent of amount invested.

As a ardent student of state & central legislature i wil always advise u to go as per d set norms as capital gains can really land u into big mess.thanks. hope u find it useful.