House property sale and purchase

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neelu iz here

28 Points Joined July 2014

Dear Members My client Purchased House in FY13-14,for 2cr and sold some other house in FY 14-15,for 1cr. he was eligible for exemption u/s54.,since he purchased house prior to 1yr of selling the existing house.now the question is purchase payments were done in EMI.,Was he eligible for interest Payments Deduction u/s 24.,And Extra Amount paid on Purchase was 90L,Any eligible exemptions for this??? Thanks in advance

Replies (4)

CA Ashish Barthwal

Practising Chartered Accountant

104 Points Joined March 2015

if the emi and interest belongs to house he purchased, and still in his possession and ownership. he is eligible.

neelu iz here

28 Points Joined July 2014

Thanks CA ASHISH BARTHWAL.

The house was still under his possession only.was he eligible for both interst on housing Loan of rs 200000 and u/s 80C deduction of principal repayment of rs 1,50,000,since LTCG wil be zero now.

manoj

student

5205 Points Joined February 2009

ya he is elidigible

Basavaraj

B.Com FCA

193 Points Joined September 2007

Hi,

there are 2 things to be noted here. First,

The Capital gain on sale of old house is unclear in your question. Assuming that Rs. 1 crore is your capital gain from sale of your old house, and the purchase value of the new hous is 2 crore. the whold of Rs. 1 crore is eligible for capital gain u/s 54. Rest of the amount paid of Rs. 90 Lakhs, there is no exemption for this.

second,

The interest on borrowed capita is eligible upto Rs. 2 Lakhs if its self occoupied. If its LOP the whole of interest can be claimed as deduction in addition to the standard deduction.

Hope this clarifies your doubt