27 February 2010
We have a piece of plot owned through inheritance from Great Grandfather. The present plot was tranferred in the name of my father in 1994.Now we like to dispose the plot , at the same time seek to be benefitted under the capital gain tax. Kindly advise in context of the following :- (1) Can I show the sale realisation to close home loan already running in my name; the logic being that the realisation has come from ancestrol property and I being the inheritor of the family stand to have my share out of the ancestrol property. Also , if any tax possibility under capital gain can be used to nullify home loan prior to gain under capital gain (2) If not (1) above, then apart from investing the sale proceeds into another house what other option could be there to nullify the tax under capital gain (3) It is to be mentioned that the govt rate will be Rs 220.00 per sq ft and sale deed shall be on the same value.