Capital gains applicable on purchase of NA Plot ?

hi. I am selling residential flat for rs. 55 lacs which was bought in 38 lacs three years ago. There is a loan outstanding of 26 lacs which I will be clearing and will use the balance for purchasing a plot. Do I need to pay any LTCG tax. Thanks . Neha

asked Feb 22 '12 at 19:33 by Ranju 1111


There is no tax benefit available for pre-payment of home loan from capital gains.

Also, u/s 54 income tax benefit would only be available if you buy a residential house property or construct one. There is no benefit on buying a plot either.

You would need to pay 20% income tax on capital gains computed with indexation benefit.

answered Feb 22 '12 at 23:13 by pankaj 5.2k320

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Asked: Feb 22 '12 at 19:33

Seen: 1,953 times

Last updated: Feb 22 '12 at 23:13