Tax Saving

Hi Mr. Pankaj,

I am glad to come accross your website.

If we sold a property and the buyer buys at guideline value only, thereby giving us the rest money in white, then I understand from your blog that we should invest it in another property within the time period of 3-6 months to save tax. Now here, I already have an existing loan on one property, which has been partly paid. My question is - Can I use the sale amount partly to close this loan against one property and then invest the remaining balance into another property, thereby eleminating tax? Thank you Lata

asked Mar 05 '12 at 17:06 by Lata Nair 1122

If income tax arise from capital gains, there is no tax benefit on repaying home loan.

If you buy/construct a residential house property from sale consideration, then only tax benefit can be taken.

answered Mar 07 '12 at 17:55 by Pankaj Batra 5.2k320


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Asked: Mar 05 '12 at 17:06

Seen: 1,667 times

Last updated: Mar 07 '12 at 17:55