Unfortunately, I don't think you can save capital gain tax on gains out of sale of shares by purchasing property. You will have to declare this gain in your return and pay tax on the same. It can however, be adjusted with other short term or long term loss, if any, out of transactions in shares, depending upon whether your capital gain of Rs 4.5 lakhs is a short term gain or long term gain.

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Answered by Tradingfunda , an ibibo Citizen, at 7:08 PM on September 14, 2008