Capital gains tax saving account and the rules

Hi Sree
1. I went thru the article.
a.It says “u/s Section 54 – You can use the entire Long Term Capital Gain proceeds on sale of a residential house to buy another house property ”
-I am selling my house for 60 L and the Net LTCG is 24L. So by the above section, I need to invest 24Lacs in another residential property to totally avoid LTCG tax correct?
b.Indexed cost of improvement
-I have spent considerbly, say upto 4 Lacs for this house’s repairs and renovations but may not possess all receipts. Can I still deduct the 4 Lacs while calculating net LTCg?
c.”The new house has to be bought one year before the transfer of the first house or within two years after the sale”
– I heard that this has been amended to – within 1 year after the sale, instead of 2 years. Kindly clarify.
d.Also the article says, “if you are unable to invest the sale proceeds in any of the above options before the date of income tax returns filing , you can deposit the CAPITAL GAINS in CGAS”
– By this you mean that since am selling the property in Sept 2017 and if I do not reinvest this in another property before 31/3/2018 (IT financial year closure date), I will have to deposit in CGAS by 31st march 2018 and then I withdraw it whenever I finalize on buying a property, right?

2. I’m 35, single yet and have an unstable IT job, earning Rs.1Lac per month and have monthly expenses amounting to Rs.30000. I have invested my life savings of Rs.45 lacs in lump sum Debt Mutual funds very recently (doing STP to equity from the debt funds and do not wish to touch this for 3 yrs). I will get a net return of 43 lacs (after loan closure, once I sell my above mentioned house). Planning to invest 28 Lacs of my net sale proceeds in buying a flat within 6-8 months. I’m planning to invest the remaining 15 Lacs in company FDs in mother’s name (sr.citizen) so that it would atleast fetch 8-8.5% tax free guaranteed yrly interest (which will partially cover for our monthly expenses).
Is it a good idea?

3. The buyer has to pay the TDS:
-Since my sale price is 60Lacs, the buyer would deduct Rs.60000 and pay IT authorities and will only give me the remaining amount right?
-And what implications will the seller have, if the buyer fails to deduct TDS and pay?

Hi Sree, thanks for clarifying.
1. C. On this, there was a CA whom i met a few months back who mentioned that the new house has to be bought one year before the transfer of the first house or within one years after the sale (if its ready built).

2. Investing lump sum amount in one form of asset class….
I went thru the links. Right now I have my FD and MF investments in the below funds (incl STP):

600000 Shriram Transport Fixed Deposits

500000 Kotak Select Focus Fund – Growth
550000 SBI Blue Chip Fund – Direct (G)
600000 Franklin India Smaller Companies Fund-Growth
645000 Birla Sun Life Equity Fund – Growth – Regular Plan
400000 Franklin India prima plus
500000 Mirae Asset Emerging Bluechip Fund – Regular Plan – Growth Option
500000 ICICI Prudential Balanced Fund – Growth
33000 ICICI Pru Long Term Equity-Tax Svng-DP-G
50000 DSPBR Micro Cap Reg – Growth
45000 Franklin India Smaller Companies – Growth
45000 HDFC Balanced – Growth
45000 Birla SL Top 100 – Div
45000 DSPBR Focus 25 – Div
45000 DSPBR Focus 25 – Growth 1-Jan-17
45000 HDFC Mid – Cap Opportunities – Growth

So once I reinvest Rs.28 Lacs in a Residential apartment with my net sale consideration, I will be left with 15 Lacs.. Do you feel I can:
– Invest 1.5 lacs in PPF as it would fetch me tax free returns of 8.5%
– Invest Rs.50000 in NPS
– Invest remaining Rs.13 Lacs in Mutual Funds again (perhaps more on Balanced funds this time?)

Kindly suggest if its a good idea.

Thanks
Vivek

Hi Sree
I read thru the articles you sent on “too many funds”.

My financial goal is to :
1. Buy a house (within the next six months, which I’m going to do now upon sale of the property)
2. Attain a yearly return of Rs.700000 from my investments from Sep 2018 onwards.
In summary:
-I have so far invested Rs.4500000 in 5 Fund house’s Liquid/debt funds from which am doing an STP towards Equity/Balanced funds every month.
-Apart from this, I have also invested Rs.12,50000 split into 7 Fund house’s Equity & balanced funds.
-I had invested 600000 in Shriram transport FD in 2015 due for renewal in 2018.

Kindly suggest.

Hi Sree, thanks for the response.
Having read thru the links, I understand that accumulation of corpus is very critical in financial goal planning.
-Now one small question that remains is, does it make sense to park 45 L of my funds in Debt/Liquid Funds and do STP from them to equity?
-Also I gather from your article that PPF may not be the best way for retirement plan. If one looks from an 80C tax saving perspective and returns out of it, one may invest 70% in ELSS and say 30% towards PPF… Am I right?
– And is Icici Pru Cash advantage or Reliance Nippon Life
Premier Wealth Insurance Plan good plans when we talk from a retirement + Insurance + regular returns.. perspective?

Thanks a lot Sree. Can you suggest some good ELSS funds that I can start doing SIP in?