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Sunday, May 22, 2022

Akshaya Tritiya 2022: Know how you can save tax by selling gold bought on Akshaya Tritiya?

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Save Tax On Selling Gold Assets: Do you know that you can get Tax Deduction on Long Term Capital Gains (LTCG) made by selling Gold Assets. This exemption can be availed under section 54F of Income Tax. Under Section 54F of Income Tax, you can get tax exemption on the capital gains made on the sale of shares, gold, bonds other than house property. If you buy a house property or get construction done with the money received from the sale of gold, then you can get tax exemption under section 54F of Income Tax on the profit earned on selling gold.

How to save tax on selling gold
For example, suppose you bought gold in 2012-13 for Rs 6 lakh and sold it for Rs 10 lakh in 2018-19, then the capital gain you have earned is Rs 1.6 lakh (after indexation). If you invest the entire amount of Rs 10 lakh for the purchase or construction of a house property, then you will not have to pay tax on the capital gain of Rs 1.6 lakh.

The amount received from selling gold will have to be used in this way to avoid tax

1. One year before selling the gold, you have to buy a new residential property.

2. Or you will have to buy a new residential property within two years of selling the gold.

3. Apart from this or else you will have to construct a new residential property within three years of the amount received from selling the gold.

How to avoid tax liability
If you assume that you are not able to spend the entire amount on buying or building a house before the date of filing the income tax return, then in such a situation, the amount received on selling gold can be deposited in the capital gains account of any government bank. And within the stipulated time frame you can buy new residential property or get construction done.

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