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Iam Dr Venugopal, presently at Delhi. My Clarification for tax commutation for this year (in chronological Order)
Pl intimate me about the documents required & the mode of savings EMI 36,762/-( 28,000 interest & 6,700 principal for LOAN of Rs 40 lacs) wef Sep 2010 asked Mar 09 '11 at 20:25 by dr venu 1●1●1●1 |
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If you sell your first house, there will be again a long term capital gain arising on it. To save income tax on same, you will have to again invest the gain into another residential property (Section 54) or invest into capital gain bonds (Section 54EC). Regarding Home loan principal and interest payment, you can claim income tax deduction for same. For interest max 1.5 lacs is exempted for a year, for self-occupied property. For principal repayment, max 1 lac is allowed under section 80-C (limit is combined with other 80-C investments like EPF, PPF, insurance etc.) answered Mar 10 '11 at 13:46 by Pankaj Batra 5.2k●3●20 Dear Pankaj
should i have to again invest the gain into another residential property (Section 54) or
As the new asset is over and above both of them (plot & old residential house) and if the proceeds of old residential house go to loan repayment will it not suffice
Pl clarify
(Mar 10 '11 at 19:50)
dr venu
Income tax on Gain of plot sale is saved by buying second house in sep 2010.
Now another property will have to purchased to save income tax arising from capital gains on sale of old flat.
If both flat and plot would have been sold in same financial year, then capital gains could have been combined and saved by investing into a single property under section 54F.
Loan repayment from sale proceeds does not have any tax benefits.
(Mar 11 '11 at 14:47)
Pankaj Batra
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