tax saving capital gains how to?

Question

Dear Sir,
I have just sold some immovable property and would like to learn about my options to save on tax. I have heard that it is possible to invest in some bonds to save on capital gains. What are the available bonds under this scheme and how do I choose among them?
Thank you.

Answer 1

=consult a tax professional. It is called a like kind exchange and that is how tax is deferred. Like for like kind of property.

Answer 2

The only way to save caoital gain tax is to have capital losses. In determining capital gains that you pay tax on you have to go through sevral steps. First short term gains and loses net against each other. Next long term capital gains and losses net against each other. Next short term losses net against long term gains. Then you know what to pay tax on. I don't think it is wise to lose money to saave on taxes. If you have a loss on an investment and it woun't turn around for a long time then sell it and move on, otherwise keep the investment. To sell to take a loss and then buy back has to be looked at carefully because ofthe wash sale rules. If you sell at a loss you can't buy back the same stock or bond withing 30 days before or after the loss sale.
There s a tax move if you have a bond portfolio. If your portfolio is in a loss position you could sell those bonds and buy others, just not the same ones.
If you sold immovable property, I am assuming Real Estate, could you still qualify for a tax free exchange under section 1031. If the sale occurred more than 45 days ago forget that. If not consult with a CPA where you live.

Answer 3

Under Section 54 of the Income tax Act, exemption from capital gains tax on the sale of immovable property is vailable, if the sale proceeds are invested in another residential house within 6 months from the date of sale or kept in a specific deposit account in a nationalised bank for three years before which you should buy the house property. If you don't desire to buy another house, you can invest in Govt. approved bonds like NABARD, REC or NHC. You may consult a tax practitioner or CA for more clarity on the matter.

Answer 4

If the long term capital gains are not related to m you can get tax exemption under Section 54EC of the I T Act. As you know deduction under Section 5EC is given to an assessee from the long term capital gain if within 6 months you invest in Bonds redeemable after 3 years by following institutions
1.National Highways Authority of India
2.Rural Electrification Corporation Limited

If the investment amount in aforesaid bonds have been considered for the purpose of deduction from LTCG, you can not take double benefit by including the invested amount under 80C for another deduction from Gross

Answer 5

No idea about bonds. But in my experience, if you make capital gains the only thing (except in business situations and if its your main residence) you can do is offset it against earlier capital losses. make sure you apply the 50% discount if held for more than a year.

Answer 6

Pay tax is best insted of investing in low yielding bonds.

Answer 7

pay tax