Reinvesting of Property sale proceeds to avoid Long Term Capital Gains

POSTED BY sabdis ON November 15, 2014 7:33 pm ONE COMMENT

If the amount eligible for capital gains tax is to be reinvested in buying a new property to avoid LTCGT, is it necessary to reinvest full amount into a single property? Or can the amount be split into multiple investments satisfying the criteria?

For eg if the amt eligible for cap gains tax is Rs 10,00,000.

And a part amount of Rs 800,000 is invested into real estate, and remaining Rs 200,000 is invested into Bonds under 54EC, would this satisfy the requirement and eliminate calculation of long term cap gains tax on the full amount of Rs 10,00,000?

One reply on this article “Reinvesting of Property sale proceeds to avoid Long Term Capital Gains”

  1. Lokesh Jain says:

    Hi Sabdis,

    The amount can be split into buying house property and also for investing in capital gain bonds. Both the amounts will be exempt under Sec 54 of Income tax.


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