I have two separate question
1) An individual sold his flat and wants to repay his housing loan on another flat. But he does not want to repay immediately. He wants to invest a part of the sale proceed in a short term project, recover the invested amount after a period of 6-8 months and then repay the housing loan within the same financial year. Can he save capital gain tax by repaying a housing loan after using the money for some other purpose and then repay the housing loan in the same financial year? Thanks
2) An individual has been given a proposal of accepting 'x' amount for reliquishing his rights in a flat in which he is 50% nominee by virtue of a society nomination form as well as un-probated will. He refused and a civil suit was instituted against him. Now he has agreed an out of court settlement. Does he have to pay capital gain tax on the sum received for relinquishing his rights in the flat through a settlement deed? I heard that sum received via a settlement deed from a court is exempt from capital gain tax. Thanks
CAclubindia
