29 January 2014
Iwas purchased flat in Aug 2008 for 12.5 lakhs & sold it for 28.5 lakhs in Oct 2013. I have forclose my home loan for same flat as 7.5 lakhs from this sale amount. ultimately I recieved only 21 lakhs. Can I consider deduction for this foreclose home loan amount over LTCG. If I am not opt for reinvestment, how much tax I need to pay or how much amount I need to invest to have no tax ?
Long term capital gain as follows, Sales consideration = 2800000 indexed cost of acquisition = 2097423 long term capital gain = 702577 In cost of acquisition i added Rs.50000/ as cost incurred while purchasing the asset. and reduced Rs.50000/ as selling expenses of assets.
For Rs.702577 tax rate is 30% and tax payable is 210773/
You are not eligible to deduct loan amount because already it was claimed by you in sec 24
30 January 2014
For calculation of LTCG repayment of loan has no role to play. You have gained and indexation cost benefit will be allowed. If you want exemption then you have to invest in a residential flat or building or you can invest u/s 80EC. Since you are getting LTCG the tax rate of IT will be 20% and not 30% on the net LTCG
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