capital gain tax+loan

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 December 2010 I have a house of Rs. 15 Lacs.My partnership firm has taken a loan against it of Rs. 30 Lacs.NOw i want to sale the house. Sale price is Rs. 1 crore. Buyer is ready to repay the loan directly to bank. Then what will be the amt of capital gain???Whether it will be Rs. Rs. 85 Lacs??(100-15)or it will be Rs. 55 Lcas(1 crore-15-30)??

Please do reply it urgently....

CA Kalpesh Gokani

CA Kalpesh Gokani (Expert)
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18 December 2010 cap gain will be Rs. 85 lacs (without indexation and sale price of Rs. 1 crore is inclusive of Rs. 30 lacs loan repayment i.e. only net proceeds of Rs. 70 lacs is receivable)...because loan obtain against propery is not a cost of acquisition...and also it is obligation of your firm which is discharged by buyer so it is includible in sale proceeds.

Querist : Anonymous

Querist : Anonymous (Querist)

18 December 2010 Cant we take stand that the buyer is making payment to me is of Rs. 70 Lacs, and the remaing amount is to the bank of my firm...so finaly sale consideration to me is of Rs. 70 Lacs only, and the cost of house is of Rs. 15 Lacs and the capital gain rs. 55 Lacs?????

Plz clarify.....

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CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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18 December 2010 No .How can Such Stand Be Taken.
The Consideration Paid Directly or Indirectly to U Will Be taken as FVC.
Paying Bank on Behalf of U Also a Part of FVC

Querist : Anonymous

Querist : Anonymous (Querist)

20 December 2010 k.....thanks.....