saving tax on sale of land

Property bought on wife's name in 2007. sold by husband through Power of Attorney in Oct 2011. Money deposited in bank. A flat being constructed by a Govt Organisation booked in the name of husband in Nov 2010. Allotment of a specific flat, possession of house and registry in the name of husband and wife will be done after project completes. PDC given is Dec 2013. Loan sanctioned in the name of husband in Dec 2010. Six monthly instalments being paid to the Govt organisation. Question : Will tax saving accrue if the money received through sale of land be used to pay the loan ?

asked Dec 05 '11 at 13:39 by bunty 1111

If possession of new flat is received before Oct 2013 and registration is also done in the name of same person which owned earlier property, income tax benefit can be availed.

There is no tax benefit on payment of loan from sale amount. Tax benefit can only be taken if a new residential house property is bought/constructed or investment in capital gain bonds is done.

To save tax fully, your wife's ownership share in new flat must be more than selling price of old plot.

answered Dec 12 '11 at 19:11 by Pankaj Batra 5.2k320


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Asked: Dec 05 '11 at 13:39

Seen: 2,269 times

Last updated: Dec 12 '11 at 19:11