Can I save tax if I invest sale proceeds from commercial property to buy residential home?

I am planning to sell a commercial property. Can I purchase a residential apartment to save capital gains tax?
Amit Maheshwari, Partner, Ashok Maheshwary and Associates replies: Yes, according to Section 54F of the Income-Tax Act, you can save capital gains tax on the sale of a commercial property by purchasing a residential property within a year before or within two years after the date of sale of the property. Please note that the new house must not be sold before three years from its purchase, else you will lose your tax benefits.

To save tax on capital gains after selling my old flat, I bought a new flat in March 2017. The home loan availed has been fully repaid. If I sell the new flat, what will be the tax implications?
Shubham Agrawal, Senior Taxation Advisor, TaxFile.in replies: The new flat will qualify as a long term asset as it was purchased more than two years ago. If this was a reinvestment under Sec 54 in which capital gain from a previous property was rolled over, you can’t sell it for three years. Else, the capital gain exemption will be reversed. You have also availed principal repayment benefit under Sec 80C on the home loan for this flat. If you sell it before five years of purchase, the benefit availed will be added back to your income and taxed in the year of sale.

I am 70 years old, Can I claim tax deduction of up to Rs 10,000 on interest from savings bank as well as Rs 50,000 deduction for interest income from bank FDs?
Archit Gupta, CEO, ClearTax replies: You are entitled to an aggregate deduction of Rs 50,000 for both interest earned on FD as well as savings bank account. Under Section 80TTB, senior citizens residing in India are allowed a deduction of up to Rs 50,000 in a given financial year for interest earned across fixed and recurring deposits, and savings accounts with banks, post office or co-operative societies.