Question on property sold

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 June 2014 Do we need to pay any tax for the property sold? The property is about 3 yrs old.
70 percent of the money we get after selling is used to repay the home loan against the same property.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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24 June 2014 yes...it is taxable as long term capital gains. repayment of home loan is not an eligible deduction.

Querist : Anonymous

Querist : Anonymous (Querist)

24 June 2014 What can i do to save this tax.Is there an alternate solution for tax savings?
Things like reinvestment or any other option.

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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24 June 2014 depending on the property, you can invest in house property and claim deduction under 54 and 54F...or invest in NHAI/REC bonds under section 54EC

Querist : Anonymous

Querist : Anonymous (Querist)

24 June 2014 Thanks.I'm planning to invest in a small flat.I will need to check the deductions sections.Not sure what are these bonds..

Nikhil Kaushik

Nikhil Kaushik (Expert)
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24 June 2014 refer section 54 and 54F

Nikhil Kaushik

Nikhil Kaushik (Expert)
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24 June 2014 refer section 54 and 54F

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

24 June 2014 refer section 54 and 54F