Capital Gains Tax Question

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  1. kumar

    kumar New Member

    sir,
    i constructed a house during 1988 and sold the house for 10 lacs. to avoid capital gain tax i have reinvested the entire money by purchase of another house during 2010. Now i have decided to sell the house for 35 lacs and want to reinvest the entire money towards purchase of new house at the cost of 70 lacs. short fall amount of rs. 35 lacs will be taken as a loan from the Bank in my name and my sons name jointly. the new house will be registered in joint names. can i get capital gain tax exemption by reinvesting the entire money towards purchase of new house.

    ALTERNATIVELY: TOTAL COST OF NEW HOUSE: 80 LACS (INCLUDING REGN AND OTHER FEES)
    INVESTMENT OF OWN MONEY THROUGH SAVINGS: 25 LACS
    BALANCE AMOUNT WILL BE TAKEN AS A LOAN :RS. 55 LACS
    SALE OF OLD HOUSE AFTER 2 TO 3 MONTHS AND WILLL BE CREDITED INTO HOME LOAN ACCOUNT RS. 35 LACS. LOAN WILL BE TAKEN IN JOINT NAMES OF MY SON AND ME. IN THIS CASE RATIO OF INVESTMENT IN THE NEW HOUSE WILL BE MY SON 12.5% AND ME 87.5% IN THIS CASE CAN I GET CAPITAL GAIN TAX EXEMPTION FULLY.
     
  2. rudrabose

    rudrabose Active Member

    Dear Sir

    You can get full capital gains tax exemption in both the cases.
     
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