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How to avoid capital gain tax?
It is also possible to avoid capital gain tax if you do not wish to re-invest in property/home purchase.
To get exempted from capital gain tax the nature of asset transferred has to be a long-term capital asset, long-term capital assets are those assets that are held for more than 3 years.
Capital gain tax can be avoided by investing into bonds redeemable after 3 years by the National Bank for Agricultural and Rural Development (NABARD) or by the National Highways Authority of India, on or after 1-4-2001, by the Rural Electrification Corporation Ltd., on or after 1-4-2002, by the National Housing Bank or by the Small Industries Development Bank of India. The investment should be made within a period of six-months after the date of transfer or sale of the original asset and has to be retained by for a minimum period of three years from the date of purchase.
The capital gain arising from the transfer of a long-term capital asset will be exempt from tax under section 54EC.
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How to avoid capital gain tax?
It is also possible to avoid capital gain tax if you do not wish to re-invest in property/home purchase.
To get exempted from capital gain tax the nature of asset transferred has to be a long-term capital asset, long-term capital assets are those assets that are held for more than 3 years.
Capital gain tax can be avoided by investing into bonds redeemable after 3 years by the National Bank for Agricultural and Rural Development (NABARD) or by the National Highways Authority of India, on or after 1-4-2001, by the Rural Electrification Corporation Ltd., on or after 1-4-2002, by the National Housing Bank or by the Small Industries Development Bank of India. The investment should be made within a period of six-months after the date of transfer or sale of the original asset and has to be retained by for a minimum period of three years from the date of purchase.
The capital gain arising from the transfer of a long-term capital asset will be exempt from tax under section 54EC.
Click here to find more useful news...
