Q:I do not want to pay the capital gains tax as I want to use the money for paying the home loan which I applied before this capital gains occured and I am the successor of this family property. After repaying can I avoid the capital gains tax?
Latest Answer: The capital investments (house, buildings, real estate, bank deposits) are considered long term if the holding period is 3 or more years. A capital gains tax (CGT) is a tax charged on capital gains and a capital gain is income derived from the sale of an investment. If you do not want to pay the capital gains tax Buy a new house (Section 54 of the Income Tax Act) within a year of selling the house or within two years from the date of transfer or construct a new home within three years of the date of sale. The exemption amount, in this case, is restricted to the cost of the new house property. You can buy bonds issued by the Rural Electrification Corporation, National Highways Authority of India [ Images ] and National Bank of Agricultural and Rural Development.
