Capital Loss Calculation

I booked a house in March 2008 at a cost of Rs 2025/= per sq ft for 1450 sq ft house. In addition I had to pay Rs 1.5 Lacs for car parking, Rs 50,000 for club, Rs 30,000 for 2KVA power backup. I got posession in Dec 2011. Also I had taken a bank loan for Rs 12 Lacs on account of which till date I have paid around 5.5 lacs as interest. My question is that I am planning to sell the house for a total cost of Rs 34 lacs, since I want to puchase a new house at a different location. I got the house registered in my name in Dec 2011 at a cost of Rs 2.3 lacs. Now if I take interest component into account, I have incurred capital short term loss. Can I claim the capital loss? Can I adjust this loss against my salary while filing IT returns for year 2011-12?

asked Jan 27 '12 at 16:35 by Gunjan 124


You would need to compute capital gain/loss by subtracting cost from selling price.

Home loan interest paid cannot be included in house cost. Only house cost, car parking, club charges, power backup charges and registration/stamp duty amounts can be added in cost.

If the above cost is more than 34 lakh (amount for which your are selling), then it would be considered as short term loss. You can only adjust this loss against any short term gains earned.

If cost is less than selling price, it would be short term gain and you would need to add this gain to your taxable income and pay tax as per your slab rates on this gain.

answered Jan 27 '12 at 23:55 by pankaj 5.2k320

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Asked: Jan 27 '12 at 16:35

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Last updated: Jan 27 '12 at 23:55