Tax on Long Term Capital Gain from property sale

POSTED BY Prakash Gudnavar ON August 3, 2012 4:08 pm COMMENTS (4)

Recently, I paid income tax for long term capital gain from sale of a property (Jan 2012).

But then, I heard, I can also invest the gains into another property. What is the time window one gets to invest long term capital gain to claim back the income tax? Should I pay income tax for long term gains first and then claim it back in subsequent years?

I recently built a farm house and spent about 2,80,000/-. I also plan to invest some money into farm development. Can I claim exemption of income tax for these investments during next assessment year (2013-14)? Quick info: Sold property in Jan 2012. Built farm house in July 2012. Plan to do farm development over period of next 6 months.

4 replies on this article “Tax on Long Term Capital Gain from property sale”

  1. Prakash Gudnavar says:

    Thank you Manish and Ashal.

    I referrred section 54, 54EC and 54F at
    Section is 54 is not applicable to me. Section 54F is applicable but I am disqualified because I own two houses. I could have used Section 54EC but I have already invested in farm property. So I pay income tax and move on 🙂

    Thank you once again for your pointers.

    1. Dear Prakash, good to know that we were able to help you. Next time, please come to the forum before taking any action not after it. 🙂



  2. Dear Prakash, claiming back income tax is possible but not against a farm house. Please read section 54 & 54F of Income Tax Act in detail for the same. Please search here itself in the forum for LTCGs related queries & the answered provided by me.



  3. I am not sure if you can claim back the tax which is already paid like this , you should have used this info to save tax earliar . Also Not sure if you can use this trick for buying some plot , Can some one else more knowledgeable answer this one !

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