Capital Gain Exemption if used to repay Home Loan?

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  1. ASHIM KUMAR DAS

    ASHIM KUMAR DAS New Member

    I purchased property at Raipur during 2001-2002 with cost 3,25,000/- + 40,000/- = 3,65000/-
    improvement year on this property ( 2006-2007) cost 1,10,000/-
    improvement year ( 2009-2010) cost 70,000/-
    sell price : 22, 00, 000/- ( 2014-2015)
    what is the property gain and tax on gain. I want to re-pay my home loan with this gain. is it under tax benefit criteria. kindly inform me
    A K DAS
    E-MAIL: [email protected]
     
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    There is no tax benefit for repayment of home loan
     
  3. Beulah

    Beulah New Member

    Dear Sir,

    Thanks for your immediate response, This is my full issue can you please guide me.

    Land gifted by Dad in the year 2000 worth Rs. 3,00,000/-
    constructed house in 2013 (availing Bank Loan - Rs. 19,60,000/-) Cost of construction Rs. 25,00,000/-
    Sold House in 2014 for Rs. 48,00,000/-
    Puchased new plot in 2014( fur future house construction) for Rs. 28,80,000/ Regn exp - 2,00,000/- Brokerage - Rs. 1,00,000/-
    Cleared home loan of Rs. 18,40,000/-

    Am I eligible for Tax on capital gain.
    Is it compulsory to construct house in 3 years.
     
  4. ASHIM KUMAR DAS

    ASHIM KUMAR DAS New Member

     
  5. gaurav_kumar

    gaurav_kumar Well-Known Member

    @ASHIM KUMAR DAS
    As the property has been held by you for more than 3 years - this would classify as a Long Term Capital Asset and therefore benefits of indexation would also be available.

    Indexed Cost of Acquisition = 3,65,000 * 1024/426 = 8,77,370

    Indexed Cost of Improvement = (1,10,000*1024/519) + (70,000 * 1024/632) = 217032 + 113417 = 330449

    Total Indexed Cost = 877370 + 330449 = 12,07,819

    Sale Price = 22,00,000

    Capital Gains = 9,92,181
     
  6. Beulah

    Beulah New Member

    Dear Mr. Gaurav,

    Can you please look at my issue and tell me what is my tax amount.

    Land gifted by Dad in the year 2000 worth Rs. 3,00,000/-
    constructed house in 2013 (availing Bank Loan - Rs. 19,60,000/-) Cost of construction Rs. 25,00,000/-
    Sold House in 2014 for Rs. 48,00,000/-
    Puchased new plot in 2014( fur future house construction) for Rs. 28,80,000/ Regn exp - 2,00,000/- Brokerage - Rs. 1,00,000/-
    Cleared home loan of Rs. 18,40,000/-

    Am I eligible for Tax on capital gain.
    Is it compulsory to construct house in 3 years.

    If Capital gain has to be deposited what is the amount
     
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