Tax on Home loan closed before 5 yrs.

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  1. vinodtayade

    vinodtayade New Member

    I have following query about my income tax..

    In May-June- 14 i sold my flat which was purchased in Jan -2011. i closed the home loan amount of Rs. 16.50 lac (originally it was 17.50lac)
    The purchase cost of my flat was 19.50 lac (2011). I sold it in 22.86 lac (2014)
    In july -14 i purchased a new row house of Rs. 25 lac with home loan of 21.40 lac (paid stamp duty & registration charges of Rs. 1.75 lacs)

    Q.1 Will i have to pay any additional income tax (short term or long term capital gain) for this transaction?
    Q.2 Will i have to pay any additional income tax as i repaid my home loan of flat within 5 yrs?
    Q.3 Can i get deduction under section 80C for stamp duty & registration charges of new row house?
    Q.4 can i show home loan interest of both property for income tax exemption for current financial year?

    kindly answer my these queries
    Waiting for your reply

    Vinod P. Tayade
    Nashik, Maharashtra.
    9766334676
     
  2. Parul_Gupta

    Parul_Gupta Active Member

    Dear @vinodtayade

    1. As you've held the 1st Flat for more than 3 years - it is a Long Term Capital Gain. If this Long Term Capital Gain is reinvested in another Residential Property - the Gains from Sale of 1st Flat can be claimed as Exemption.

    2. You don't have to pay any additional income for prepayment of Loan within 5 years.

    3. Yes, you will get deduction under Section 80C for Stamp Duty and Registration Charges of the new House

    4. Yes, you can show the Interest of Both Houses and claim a deduction for the interest paid on Loan for both the houses.
     
  3. vinodtayade

    vinodtayade New Member

    hi thanks for your quick reply
    but i m not understanding the first answer i.e. If this Long Term Capital Gain is reinvested in another Residential Property - the Gains from Sale of 1st Flat can be claimed as Exemption.
     
  4. Parul_Gupta

    Parul_Gupta Active Member

    When you sell a flat, Capital Gains would arise which would be liable to Tax.

    However, if you invest this amount in purchasing another flat, the Capital Gains arising from the sale of the Flat would be exempted.

    Hope its clear now... Feel free to ask in case of any other query..
     
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