I would like to enquire about the sale of a property (flat) that I got registered in the year 2011.I do have another house which is a land+property bought few years back and is still being held. If I have to sell the flat in the year 2012, what would be the STCG/LTCG to be paid? Can the interest paid for the period from the booking upto the sale of the flat be considered as loss incurred?
1 Answers
As flat is being sold before three years of holding, it will result into short term capital gains. There is no income tax benefit allowed on such gains. Whole gains (selling price - buying price) would be added to your taxable income and taxed as per your slab rates.
Home loan interest paid on flat can be claimed for tax deduction separately u/s 24. Interest can only be claimed from the year of possession of flat. Whole interest paid before year of possession of flat can be claimed in five years in five equal installments starting from year of possession.
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