Can I buy plot from the money got by selling stocks to avoid capital gains tax ?

POSTED BY JP ON July 17, 2014 10:45 pm ONE COMMENT

I have a TOTAL stock corpus of 20 lakhs with 10 lakh profit. I wanted to convert stocks to land. What should I do to make capital-gain tax as zero if I sell the total stocks?

Should I buy 10 Lakh worth plot?
Should I buy 20 Lakh worth plot?

One reply on this article “Can I buy plot from the money got by selling stocks to avoid capital gains tax ?”

  1. Ashish Garg says:
    July 18, 2014 at 4:59 pm

    Long/short term capital gains can not be set off by investing the profit in another avenue.

    In case your profit from stock is short term (with investment less than 1 year) than you have to pay tax at a flat rate of 15.45% on profit booked. If it is long term (if invested for more than 12 months), the whole profit made is tax free.

    Ashish

    Reply

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