Long Term Capital Gains on sale of residential plot

1 year ago

I have sold out my residential plot of 200 Sq Yards on 2nd Mar 2023 which was bought in 2003. After considering the indexation , the LTCG comes @ Rs.9.8 Lakhs. I do not have any plans to buy a fresh property to claim the tax exemption. But I bought a residential flat 4 years back in Nov 2018 for which I took home loan from SBI for Rs.40 lakhs. I am regularly paying the EMIs. Now the loan outstanding is 31 lakhs. I got the benefit from PMAY also. During tax filing, I am claiming the tax exemption for Rs. 2 lakhs under section 24 as income from house property (towards interest paid on home loan) My question is whether I can claim the LTCG tax exemption by remitting this LTCG amount of Rs.9.8 Lakhs against my outstanding Home loan amount. Am I eligible for complete tax benefit in this way or not. Kindly suggest.

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Anik

Responded 1 year ago

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A.Hello Sir,
The exemption from long term capital gains is not available in respect of repayment of a home loan. You can claim deduction under Section 80C for repayment of home loan to the extent of 1.5 lakh rupees every year along with other eligible items.

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Sundaravadivelu Velu

Responded 1 year ago

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A.To avoid capital gain tax you can invest in the capital gain schemes provided by the government of India and banks also. The best investment and a higher rate of interest are provided by the High Ways Authority of India compared with the bank. All capital gain investments are subject to a lock-in period of a minimum of three years.

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Kishan Dutt Kalaskar

Responded 1 year ago

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A.Dear Sir,
You have to consult any chartered accountant or Auditor and get suitable guidance in the above matter which deals with payment of tax exemption thereto etc.

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