Is my LTCG (via Sale of Commercial Property) eligible under Section 54EC?

Details are as follow:

  • Commercial Plot is purchased through joint names (father and me), construction cost paid through cash.
  • Plot booked in 2019, Sale process started in 2022 [about 35% received via biana within a week ago, remaining 65% payment to be received within 2 months as per mutual agreement]
  • Plot’s Basic Sale Price = Rs. 33L; however, overall including EDC and Delayed Interest, up to Rs. 34L
  • Sale amount = Rs. 50L
  • I do not own any house, live under mother’s rental lease agreement, currently.
  • I’m a salaried employee under private company.

My queries/confusion:

  1. Cost Inflation Index FY based on possession date (not booking date) as entry date and sale transferred (not biana date) as exit date, right?

  2. Since it is a jointly held, I did not pay anything to acquire the commercial plot but father did. Now when we sell, 50% will be to each account, what would be my LTCG?

  3. Please correct me if I’m missing something for my LTCG (>24 mo.):
    (+) Sale Consideration: Rs. 25L (half of 50L overall joint)
    (-) Transfer Expenses: Rs. 0 (constructed via cash not eligible, right?)
    (-) Indexed Cost of Acquisition: 16.5L * 317/289 = 18.1L
    (-) Indexed Cost of Improvement: ?? (what exactly is this?)
    Long-Term Capital Gain: 6.9L

  4. If possession date and sale date is 24+ months , can I save LTCG tax by just investing Rs. 6.9L in IRFC/NHAI/PFC/IRFC bond under Section 54EC?

  5. If yes, can I keep 18.1L in my bank account or invest in FD / MF? Any further suggestion?

3 posts were merged into an existing topic: Exemption under Section 54EC