Property tax -CGAS

Shakes 16
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Hi My friend has a propety bought in May 2006. He intentds to sell in August 2011.

He bought another property in Nov 2009 from a Housing loan from bank. He intentds to deposit the amount received from the sale of the old proprty in CGAS.

From the amount deposited in CGAS can he repay the exisitng housing loan for the property bought in Nov 2009.

regards shekhar

capital-gains-account long-term-gains section-54 home-loan income-tax
1 Answers

Amount kept in CGAS cannot be used to repay home loan. There won't be any tax benefit available in repaying home loan and income tax would be payable @ 20% rate on long term gains if a new house property is not purchased.

Pankaj Batra5212
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