Dear sir, I have a plot purchased in sept 2007 for Rs 3lacs. it will fetch me about 9 lacs. i wish to repay Rs 9 lacs towards repayment of my housing loan ( the only house I have, for which the final loan disbursment was taken in June 2010.) I want to know what will be tax implication with respect to LTCG. Regards
1 Answers
In order to save income tax on gain arising due to sale of plot, the whole consideration amount has to be invested back into a residential flat between time frame of one year before sale and two years after sale. In case your new house is purchased between this period, you can pay towards housing loan and save tax on capital gains.
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