Mrs.XYZ ( a entrprenuer)buys a Flat in year 2014, by taking a housing loan, and claiming its deduction in ITR for last 2 years , both as part payment of principle amount , and interest paid to bank , Now in the 3 rd year. for some reasons, she wants to sell that newly acquired flat , before mandatory 3 years ( application of LTCG) , so what BEST avenue as INCOME TAX PLANNING is for her ?
such that she can retain deductions ( of last 2 years)for REPAYMENT of BORROWED CAPITAL of HOUSING LOAN and INTEREST PAYMENT. as part of proceeds of that SALES of FLAT, would be used by her to PRECLOSURE of housing loan, now 2 nd question /querry arises how to treat entire amount / balnace amount , (a) will it be a LTCG if sold after 36 months or (b)STCG if sold before 3 years , or (c)will be a BUSINESS INCOME .
(i) Postpone registeration of sale deed , after 3 years - as if she does the same before 3 years , she may not (necessarily forego) claim for deduction of repayment of principle and interest of housing loan. as there is No provison for revisng ITR for last 2 years .
CAclubindia
