Judicious utilisation of income fro LTCG

I own a flat jointly with my wife since year 2007 at lucknow. I am co owner of a flat at Nioda, my son being first applicant there. The possession of the flat is likely in the middle of year 2012.

For my Noida based flay I have availed the following loan.

  1. Borrowed from my wife through cheque (She is an IT payer) Rs 1.52L in April 2011, Rs 3.5 L in Sep 2011 and Rs 3 Lac inMar 2011.
  2. Loan from bank against my Fixed Deposits Rs 5L in June 2012.

I want to know whether the above loans can be repaid out of sale proceeds of agricultural land( within 8 KM from municipal limits) in Sep 2012 as per provisions of LTCG ?

Thanking you,

G K Mishra.

asked Sep 28 '12 at 16:36 by girindra 113


There is no tax benefit available on repaying home loan from sale proceeds of a capital asset.

However as you indicated that you are getting possession of a flat so you can take tax benefits u/s 54F by showing residential house property purchase.

answered Sep 29 '12 at 00:07 by Pankaj Batra 5.2k320

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Asked: Sep 28 '12 at 16:36

Seen: 1,540 times

Last updated: Sep 29 '12 at 00:07