Capital gain - Where to invest

Q & A Forum › Category: Investments › Capital gain – Where to invest

kvandh asked 9 years ago

I am planning to sell my Flat by coming week, I have calculated LTCG as 45K. I am not interested to buy another property. How do i save this LTCG amount. Where to find CII ( cost inflation index) for this year 2017. Based on that i can calculate exact LTCG. I am planning to invest full sale amount into FD, so that monthly i can get some payout. Please suggest me.

How to avoid LTCG without buy flat/BOnds.
Which FD / Debt fund suitable for monthly interest payout for my expenses.

3 Answers

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Sreekanth Staff answered 9 years ago

Hi, Kindly note that there is no provision to save taxes on LTCG by investing in regular bank FDs or Debt mutual funds. Kindly read : https://www.relakhs.com/how-to-save-capital-gains-tax-on-sale-of-land-house-property/

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kvandh answered 9 years ago

Sorry I have put wrong question about saving LTCG by FD. Let me rephrase my query clearly, I want the following points to be considered for my reinvestment of Sale amount.

Capital preservation
Monthly interest pay out
Less tax out go.

So i need to choose between FD vs Debt funds. Do you think i can achieve above points if my choice is Debt funds over FD. If so which category of Debt fund suitable. On top all , anyhow i need to pay the 20% tax for LTCG.

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Sreekanth Staff answered 9 years ago

Hi, Kindly note that returns on Debt funds are not guaranteed and capital preservation may or may not be possible through debt funds. If you understand the risks associated with debt or hybrid funds, you may consider setting up SWP (Systematic Withdrawal options) option for Debt funds or MIP Funds (more risky). Suggested readings : https://www.relakhs.com/best-monthly-income-plans-india-mutual-funds/ https://www.relakhs.com/debt-funds-types-benefits-risk-vs-return/ https://www.relakhs.com/list-of-best-investment-options-schemes-in-india/