So recently we sell a house and we are planning to buy a new house after 1or 2 year so I want to save tax and I want to invest my amount into mutual fund and fix deposit scheme. So how can I save tax on it and invest it in a correct manner. Let an example for 50 laks. Please help me to save tax and generate a passive income.
How to save tax when we sell any house?
- Thread starter roshan01
- Start date
Krishna finance
KF Rookie
Since you recently sold a house and plan to buy a new one in 1-2 years, here are some steps to save tax and invest the 50 lakhs to generate passive income:
Tax Saving
- Reinvest in Property (Section 54): If you buy another house within two years or construct one within three years, you can save on capital gains tax.
- Invest in Bonds (Section 54EC): You can invest up to 50 lakhs in specific bonds (like NHAI, REC) within six months. These have a five-year lock-in period.
- Capital Gains Account Scheme (CGAS): If you need more time to buy a house, deposit the gains in this account to claim tax exemption until you invest in property.
Investment for Passive Income
- Mutual Funds:
- Debt Funds: Invest 20 lakhs for stability and moderate returns (5-7% annually).
- Equity Funds: Invest 15 lakhs for potential higher returns (10-12% annually) but with higher risk.
- Hybrid Funds: Invest 10 lakhs for a balance of risk and returns (8-10% annually).
- Fixed Deposits (FDs):
- Invest 5 lakhs in FDs for assured returns (6-7% annually) and safety.
Expected Passive Income
- Total: Approx. 3.8 lakhs/year
TaxWiser
KF Mentor
Brother, Seems like you haven't heard recent changes in Taxation due to the Union Budget 2024.
Now, Concept of Indexation Benefits has become extinct.
