Sujit Bangar
@sujit_bangar
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IRS| Harvard | Founder | @TaxBuddy1 ‘India’s most TRUSTED tax filing service | If u face any issue with our service,pls feel free to write me [email protected]
Mumbai, India
Joined May 2010
Like the content?. Follow us (@Sujit_Bangar) for more on personal taxation. Retweet the first tweet to spread awareness:.
Sold a property and want to save on tax?. People rush to invest in 54EC bonds like NHAI/REC to avoid 12.5% capital gains tax. But is it really worth it?. Paying tax and investing smartly elsewhere may give you more in hand. An explainer🧵👇
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A mix of arbitrage funds and equity funds may also be considered to balance stability and volatility.
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[6] So what should you choose?. 🔸If your priority is 100% tax savings, 54EC is safe. 🔸But if you can afford to pay tax and invest by taking a bit of volatility risk, you may walk away with ₹9.6L+ more in just 5 years. Let your goals decide it.
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[5] Equity MF vs 54EC. 🔸Interest on 54EC = 5.35%.🔸Post-tax return (assuming 30% slab) = 3.745%. Now compare this with investing in an equity mutual fund for 5 years:. 🔸Returns = 12–14% CAGR.🔸Post-tax (after 12.5% LTCG) = 10.5%–12.25%. That’s a significant gap👇.
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[4] The risk–reward puzzle:. Say Ms. A earns ₹50L as LTCG. Tax payable @ 12.5% + cess = ₹6.5L. To save this, she invests in 54EC bonds. BUT… the return is just 5.25% (taxable), and money is locked in for 5 years.
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[3] Key Features of 54EC Bonds:. 🔸Must be from sale of long-term land/building.🔸Lock-in: 5 years.🔸Cannot pledge/sell before 5 years.🔸Interest: Taxable.🔸Max. investment limit: ₹50 lakhs.
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[2] Under Section 54EC, you can invest up to ₹50 lakh from your LTCG into:. ✔️ NHAI (National Highways Authority of India).✔️ REC (Rural Electrification Corporation). But the investment must be done within 6 months of sale of land/building.
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[1] You can save lakhs in capital gains tax using 2 options:. 🔸Section 54/54F - Reinvest in a residential property.🔸Section 54EC - Invest in notified bonds (NHAI/REC) within 6 months. Let’s decode 54EC and whether it makes sense👇.
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Sold a property and want to save on tax?. People rush to invest in 54EC bonds like NHAI/REC to avoid 12.5% capital gains tax. But is it really worth it?. Paying tax and investing smartly elsewhere may give you more in hand. An explainer🧵👇
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RT @TaxBuddy1: NRIs and Indians who bought flats in Dubai could be in serious trouble. You could now face a 120% tax penalty + PMLA action….
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RT @TaxBuddy1: Income-tax is raiding individuals for deduction claims. They're cracking down on fake HRA, donation deductions, etc. using A….
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RT @IncomeTaxIndia: ➡️The Income Tax Department has launched a large-scale crackdown on fraudulent claims of deductions and exemptions in I….
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RT @TaxBuddy1: NRIs, don’t file your ITR-2 blindly this year. There are 4 big changes you must know before filing for FY 2024-25. One mis….
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RT @TaxBuddy1: Nilesh invested in US stocks!. Now a ₹10 lakh penalty is looming over him under the Black Money Act🤯. Because he forgot to r….
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RT @sujit_bangar: Mrs. Damani sold a ₹5.98 Cr flat in Powai. To claim a Section 54 exemption, she bought a ₹3.85 Cr Lodha flat from her hus….
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RT @sujit_bangar: [7] Key Takeaway. You can claim Section 54 exemption even if buying from a relative - as long as the deal is genuine, doc….
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RT @sujit_bangar: [2] Case: Ravinder K. Arora (ITAT Delhi). 🔸 Sold Powai flat on 09-Jan-2020. 🔸 Capital gain: ₹4.21 cr. 🔸 Bought Lodha flat….
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RT @sujit_bangar: [6] Checklist to Claim Safely. ✅ Pay via bank (NEFT/RTGS/cheque).✅ Register the sale deed.✅ Deduct TDS if needed.✅ Purcha….
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Like the content?. Follow me (@sujit_bangar) for more on personal taxation. Retweet the first tweet to spread awareness:.
Mrs. Damani sold a ₹5.98 Cr flat in Powai. To claim a Section 54 exemption, she bought a ₹3.85 Cr Lodha flat from her husband. Income-tax officer denied the exemption. But here’s how she was still able to take the exemption 🧵👇
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