Buy bonds or house to reduce your tax liability on long term capital gains from sale of land.

Someone asked on Yahoo Answer-replied by me on 10/11/06I bought a piece of land about 4 yrs ago and am planning to sell it. I am expecting decent profit on this sale. I want to know about the current capital gains tax rates. I believe there is a provision for lower capital gains tax rates…

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Investment in IPOs could have reduced your tax!

Yes, you rightly heard , but unfortunately the scheme of giving exemption is not available for long term capital gains (LTCG) on sale of shares or units of mutual fund after 1/4/2006.The relevant section is 54ED of the I T Act.If you had LTCG on sale of shares or units and you invest within SIX…

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Whether construction of house must be completed within 3 years for claiming exemption u/s.54 & 54 F?

NO. Similar issue was raised in Smt. Sashi Varma vs. CIT [1997] 224 ITR 106(MP) and the High Court decided in favour of assessee and state that its not necessary that the residential house must be completed within three years….

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My father was running a proprietorship business. Now he plans to sale the whole business to Mr. X. Is he liable to tax ?

Yes and No ,depending on whether there is gain or loss as per computation method prescribed under Section 50B of the I T Act.The sale of any business as a whole , is in tax language, called ‘ slump sale. Section 50B governs it and provides that gain or profit out of such slump sale…

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Capital Gains on Shares or Mutual fund units taxable ? What you say , Man.

Yes , you rightly heard . Not all long term capital gain on sale Of equity shares or units of mutual funds are tax free.The conditions fulfilled for claiming exemption are the transaction of sale of shares or units must be subject to Securities Transaction Tax. In case of units of mutual fund additional conditions…

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Is Registration necessary for Claiming Exemption u/s 54 or 54F ?

No,the word used in the relevant provision is PURCHASE and purchase completes when one person pays full according to purchase agreement and the seller hands over the property or willing to transfer the property.So , no registration u/s 17 of the Registration Act  is necessary for claiming exemption under Section 54 or 54F of the…

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Securities Transaction Cost not allowed?

Yes ,that STT (Securities Transaction Cost) is not allowed to be taken as cost of acquisition of the shares or purchase for computing capital gain. Remember also that Section 88E benefit is allowable only in case of share business . The simple reason why  you do not get such benefit for Capital Gains that on…

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What will be the capital gain on sale of agriculture land?

Someone Asked on Yahoo Answer-replied by me on 26/10/06I am selling agricultural land in Haryana and reside in Delhi,the receipts i understand are tax free.I seek advice to ensure that proper documentation is done/proper process is followed to ensure income tax hassles now or later on.I want to show actual receipts,an all white transaction.The seller…

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Is agricultural land sale non taxable?

Yes and NO.The reason:Read the definition of the capital asset in section 2(14) of the I T Act :As per this , Capital asset does not include Rural Agricultural land . Thus sale of Rural Agricultural land is free of any tax . But in case of sale of Urban agricultural land ,Capital gain tax…

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