If I earn after selling my old land property & use that amount for closing existing home loan (taken 4 years back) account, then is my earning from land will be taxable? ie. say I have a home loan (taken in 2010) of 15 Lakhs. I have received 12 Lakhs in my savings account by selling my land property in 2014-15. Now if I pay 12 Lakhs from my saving account to loan account in 2014-15, will this earning (12 Lakhs) from land will be taxable.
2 Answers
First, there is no income tax benefit for repaying home loan from property sale proceeds.
Under section 54F, if one use sale proceeds towards purchase of a residential house property, tax benefit would be available.
If new property is bought within one year before and two years after sale, benefits can be taken.
But as you bought house property in 2010 and selling land now, no tax benefit would be available for this.
In the case of Repayment to home loan no tax is applicable. Steps to close a home loan:
- Document Collection Receipt of Noc Removal of property Lien CIBIL Score needs to be updated
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