saving capital gain tax

Dear Sir,

I purchased a plot in 1998 a cost of Rs.1,75,000/- & sold the same in Dec.2011 at a cost of Rs. 15,00,000/-. I have already a flat in my name for the last 10 years. I have also booked a flat in Sept.2009. Total cost of the flat is Rs.18,00,000/-. The possession of the flat will be given in Sept. 2012.

I have availed Housing Loan of Rs. 1500000/- against this flat in Jan.2010 out of which Rs.1300000/- has been paid. May I adjust the Housing Loan and pay balance amount to the builder from the LTCG (from sale of plot) to save long term capital gain tax.

asked Feb 06 '12 at 12:21 by Vipinfigo 111

As you would already be getting possession of a new residential house property before end of two years from plot sale, you can save income tax u/s 54F. As cost of new flat is more than sale consideration of plot, you would need to pay any income tax on long term gains.

You can prepay home loan from this sale consideration amount.

answered Feb 10 '12 at 16:51 by Pankaj Batra 5.2k320


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Asked: Feb 06 '12 at 12:21

Seen: 1,560 times

Last updated: Feb 10 '12 at 16:51