Tax benefit from house loan

This query is : Resolved

Mahua Banerjee (Querist)
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31 July 2007 Hi,

I had bought a property (@ Rs. 9.25 Lakhs)in Jan-2006 by taking home loan & claimed the tax benefit (principal as well as interest amount) for the financial year April 06 to March 07.

Now I have sold the property (@ Rs. 11.25 Lakhs) on 21 july 2007.Please clarify the following :-

Q1. Do I need to refund the tax benefit of the last financial year in this current year i.e. april 07 to March 08.

Q2. Do I need to pay capital gain tax? How it will be calculated?

Q3. If a property is sold after 3 years of buying the same

a. Income tax benefit obtained in these 3 years needs to be refunded back or not ?

b. will it fall under capital gain tax if the profit earned by selling the property is invested again in another property?

Q4. Please suggest a qualified CA in Navi Mumbai, Vashi or Koperkhairane

ravi kanth

ravi kanth (Expert)
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31 July 2007 hi,

U need not to refund any tax benefit if u sold it in july 2007 or after 3 years. u were the owner and u borne the expenditure at that time. u calculate only capital gains for Previous year 2007-08.
i want to ask u one silly question., if u sale it in july 2007. will govt refund u the tax paid on income from house property. does it repay u if u sell it after 3 years. i hope u got it.
thank u

Mahua Banerjee

Mahua Banerjee (Querist)
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07 August 2007 Hi,

Kindly confirm wether I have understood the clarification properly or not :

If a house is sold after 3 year of buying the same, then there is no need to refund the tax benefit back to the Govt.

Another question :-
If I invest the sale proceed of the house sold (after 3 years of buying the same)in buying another house, do i need to pay capital gain tax?

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JAI VATNANI

JAI VATNANI (Expert)
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10 August 2007 IF THE ENTIRE CAPITAL GAIN AFTER INDEXATION IS REINVESTED IN ANOTHER RESIDENTIAL HOUSE THE CAP.GAIN WD BE EXEMPTED U/S.54