You can save tax on gold profit by knowing section 54F.
If you bought gold 5 years ago and let's say you made a profit of 10 lacs, you will need to pay 20% long term capital gain tax so 2 lac rupees gone.
Now what most people don’t know is that you will NOT need to pay this 2 lacs rupees of tax if you use this 10 lac rupees in buying a house within 2 years of selling the gold.
Also if you use this 10 lacs rupees in constructing a new house within 3 years of selling the gold, you will not need to pay any tax on 10 lacs.
Both these provisions are under the section 54F
Just by knowing simple tax rules, you can save lacs of rupees of tax on gold.
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