12 January 2014
Is this figure with Indexation cost or without Indexation. This means that I will have to invest in the property to the extent of 55.30 lacs in order to save capital gains tax.
I am currently having a property in proper Mumbai and have availed Housing loan on the same property. Can I repay the loan against the sale proceeds received from another property or it is mandatory for me to invest in another property
12 January 2014
Since you are having 2 properties no benefit will be available to you except price indexation. So you calculate indexation and the only option with you is to invest 50,00,000/- in Bonds as specified u/s 54EC. If still your capital gain is greater then the index valuation you have to pay LTCG. The only thing you can reduce is brokerage if any paid by you. If he or she is your family member then of 70 lacs 1% can be paid as brokerage and that too you should pay by cheque.
12 January 2014
provided it is a property subject to taxation from income from house property, then you can also avail section 54. you need to invest Rs 53.31 lakhs to claim full exemption. Now regarding the question of whether the same can be used for repayment of housing loan, well it depends on when you bought the house against which loan is there. If the house was bought in less than a year before the sale of this property, then you can claim exemption. If it was bought more than a year ago, then no...then you shall have to invest in some other house property..
CAclubindia
