LTCG Tax on sale of Plot

I purchased a House from UP Housing Board for about 41.0 Lakh under a self financing scheme. I took possession of the house in April 2011. For the purchase I took a housing loan and approx 4.5 lakh is the balance to be returned.The rest was from my savings and income. In Jan 2013, I plan to sell a plot (residential) purchased over 12 years back and will be getting approx Rs 14.o Lakh for it. Since the cost of the new house is more than the sale proceeds that I will get, do I have to pay LTCG Tax? Can I return the balance of the loan from this 14.0 lakh and claim relief in LTCG and pay tax on the balance after returning the loan. (After indexing)

asked Nov 25 '12 at 19:27 by Seth 12


As possession for new house is already received more than one year before sale of plot, you cannot get tax benefit under section 54F for this purchase. You would need to buy a new residential house property or invest into capital gain bonds.

answered Nov 30 '12 at 17:25 by Pankaj Batra 5.2k320

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Asked: Nov 25 '12 at 19:27

Seen: 1,162 times

Last updated: Nov 30 '12 at 17:25