Dear Sir, I and my wife are co borrowers and are paying EMI to Bank towards loan on a plot of land ( asset 1) My wife is selling her share of ancestral property (asset 2)gifted to her by her father. Can we use the proceeds from the sale of asset 2 to settle the bank loan on asset 1 .What will be the Capital Gains implications? Please advise at the earliest. Regards Vasant
1 Answers
There is no tax benefit on pre-paying home loan from sale proceeds of a sold property. Income tax on capital gains still have to be paid.
Income tax on capital gains can be saved either by buying a residential house property (or constructing one) or investing into capital gain bonds.
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