MURALIDOSS (INCOME TAX PRACTITIONER) (1329 Points)
02 June 2020Sir,
A person purchased a plot in 1985 and build house. now due to business loss for his son around 3200000/- he need to pay bank loan.
that was purchased for 700000/- in 1985.
so, that he sold his house in 2020 for 4600000/- to a NRI . but he not puchased new house/construction,etc.,
His loan repayment can consider for his capital gains?
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 02 June 2020
My assumption is, there is no capital gain on sale of asset.
So, this cannot be considered under CG accounting is what I believe.
But, if the house is revalued, and, I am not sure about measurement of private properties, if the revaluation amount is more than it’s book value, then you have a capital gain.
I just happened to go through this article which mentions that business losses can be set off against any other income, so, technically, if you have a revaluation gain on sale of your property, you can set off the business loss and hence, one will get exemption because setting off against non-tax exempt gains is possible it seems. Contact your auditor for further details.
One more thing, CG tax exemption is prevalent for three years from the date you sell your home. Maybe, you have to wait till that period and then clear off your business loss.
shadab shaikh
(133 Points)
Replied 02 June 2020
PF & ESI Course - Labour Code 2019 Along with Examples and Case Studies
CAclubindia
