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House property

Divya Priya (student) (333 Points)

22 January 2019

I am going to buy House property in chennai which costs RS.1 crore.For which I am going to take housing loan of 20 Lakhs .Also I will sell residential land for 30 Lakhs.I want to know TDS to be deducted for 1. Pur of house property at what rate 2. Sale of residential land at what rate 3. How to treat housing loan when filing ITR?

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Giridhar S Karandikar (Team Lead) (7548 Points)
Replied 22 January 2019

the value as per the agreement is More than 50lacs then TDS @ 1%needs to be made on the entire value. so in your case it will be 1lac TDS
when you sell your land you will be subjected to capital gains tax 20%.if held for more than 36months. however you can full tax by investing in a residential house property by investing entire sale consideration received. so the property that you purchase for 1cr can be applied for capital gains on sale of land. alternately you can invest max 50lacs in capital gains tax savings bonds under 54EC and save cg tax
the interest portion o. your house loan is deductible from gross total income upto RS.2lacs and on principle AMT you can get deduction under 80C upto 150000.

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Divya Priya (student) (333 Points)
Replied 22 January 2019

Thank you very much sir.

Giridhar S Karandikar (Team Lead) (7548 Points)
Replied 22 January 2019

you are always welcome

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Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 22 January 2019

TDS will be deducted @ 1%.

Housing loan principal repayment deduction may be claimed u/s 80C upto 1,50,000 and interest payment deduction u/s 24(b) upto 2,00,000 or no limit depending on house being LOP or SOP.

Dint understood your second question.