Publication details: Zee Business – July 9, 2019
Responses, opinion and view from Kartik Jhaveri
Real estate has remained one of the most favored investment options among investors. Reason for this is the fact that in the first decade of the 21st Century, real estate has given big returns in relatively less time. However, it has been found that people investing in the real estate market are slightly ignorant about the taxes involved, especially the Long Term Capital Gain (LTCG) tax and the relaxations that government gives to a real estate investor. Tax and investment experts are of the opinion that being ignorant to this tax may land the investor in trouble.
On ways to avoid LTCG while filing Income Tax Return (ITR) Kartik Jhaveri says, “A real estate investor can keep the money into the capital gain account after selling out his or her property. This period can be up to three years. During this period, one can re-invest this money into another property and avoid LTCG tax. During these three years, the investor would get interest on his or her money as per the rate is given by the bank to its saving account holders. However, to maximize one’s gain, an investor can buy capital gain bond up to Rs 50 lakh within six months of the property sale.”