POSTED BY April 24, 2012 7:03 pm COMMENTS (12)ON
My father has transferred a plot which he purchased during 1990s to me and my brother. And we are planning to sell it, and construct a house for my brother (at our native place). We have planned to park this amount in Capital Gains Account and utilise it after 5 months to construct house. And I have the below queries,
1. If the sale is made before 31st July (last date to file IT), should I pay tax for the sale?
2. a) Is it mandatory to park the sale amount in Capital Gains Account, as we would utilize the full amount for construction (infact, would be applying for a loan for shortage amount)?
b) If yes, is the answer to above query, should we need to close the Capital Gains Account, as we would utilise the full amount? Can we leave the CAG Account open?
3. Does the piece of land where my brother constructs home, should be on his name to avail Capital Gains tax benefit?
Thanks in advance..KK
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