Setting off capital gains against home loan

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  1. Amit M

    Amit M New Member

    In Jan 2015 I sold a house we had purchased in 2001. Can I use the long term capital gains from the sale to repay the home loan against another property (date of possession Oct 2014)?

    - If yes, what documents will be needed to be submitted while filing tax returns or if inquired by the IT deptt to properly record this “investment”?

    - To calculate cost indexing, what is the best source typically used by CAs?
     
  2. rudrabose

    rudrabose Active Member

    1. If the property in which you intent to reinvest the money was purchased 1 year before or 2 years after the sale of the existing property, then you can claim the exemption under section 54. The date of possession in this case is irrelevant.
    2. You can refer this link for indexing the cost of acquisition - http://www.charteredclub.com/cost-inflation-index/
     
    Amit M likes this.
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