I have sold one of my long term property and i want to save the tax on long term how can i save it.?



In which scheme i should deposit the amount?
Will the interest and the principal will be tax free after 3 years?
Shall I should pay the tax of 20% what should I do?

I have sold one of my long term property and i want to save the tax on long term how can i save it.?
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One Reply to “I have sold one of my long term property and i want to save the tax on long term how can i save it.?”

  1. If the property sold by you after 3 years of holding, then it will become long term capital gains. The gains has to be calculated as per indexation. The indexed gains will be lesser than the actual gains as per inflation.

    You can deposit the same in any infrastructure bonds with in 6 months (U/s 54EC). The interest on the bonds are taxable (Not tax free).

    http://www.incometaxbangalore.org/faq/cgains.htm

    If you need money for some good investment purpose or for any business, then pay tax. If you do not have any plans to use that amount for any other purpose, then deposit it in the said bonds.

    Another web site to read:
    http://www.topnews.in/long-term-capital-gains-after-october-1-228





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