Home loan benefit and STCG tax

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  1. mSachinus

    mSachinus New Member

    i have a query regd home loan interest benefit 24(b) and stcg tax,
    i have invested in one flat and taken home loan on it, not in case i sell it within 3 years i have to pay short term capital gain tax, and what happens with home loan interest benefit which i will take till selling of flat.

    also if a take another flat and invest the STCG in some other home, shall i get examptation in STCG tax.
  2. ZED

    ZED Well-Known Member

    The amount of principal in respect of which deduction was claimed earlier would be required to be treated as income.

    As per S.80C(5) Where, in any previous year, an assessee transfers the house property referred to in clause (xviii) of sub-section (2) [in respect of which deduction was claimed] before the expiry of five years from the end of the financial year in which possession of such property is obtained by him, or receives back, whether by way of refund or otherwise, any sum specified in that clause,


    (a) no deduction shall be allowed to the assessee under sub-section (1) (of 80C) with reference to any of the sums, referred to in clauses (i), (x), (xi) and (xviii) of sub-section (2), paid in such previous year; and

    (b) the aggregate amount of the deductions of income so allowed in respect of the previous year or years preceding such previous year, shall be deemed to be the income of the assessee of such previous year and shall be liable to tax in the assessment year relevant to such previous year.

    No, there is no such provision in the Act.
  3. mSachinus

    mSachinus New Member

    Thanks for the reply,
    my first question was regarding Interest component benefit 24(b), you have clarified for Principal part which is under 80C, Kindly also guide me for Interest component benefit 24(b)
  4. ZED

    ZED Well-Known Member

    Only the principal amount claimed as a deduction u/s 80C needs to be reversed. Interest under S.24(b) is not to be reversed because there is no specific provision for its reversal. For 80C, it has been specifically mentioned.
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