Dear Forum members, My father gifted me a land in Sep 2007 (I held Indian Passport, but NRI status) and now I plan to sell in August this year. Now I am British with Overseas Citizen of India status. I've taken a NRI home loan in June 2007. My query is how much I owe as capital gains tax if I pay the whole proceeds from the sale of gifted property into my existing home loan. Many thanks. Vijay
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Long term capital gains tax on gifted property sales
Replies (4)
As I understand, there is no exemption from capital gain for repayment of home loan out of proceeds of sale in this case. The only way to get exemption is by investing in other house property, bonds etc. subject to specified conditions. That means, if you had purchased this house property (for which loan is outstanding) within 1 yr before sale of plot (which is not the case), then there was a possibility to avail exemption u/s 54F.
Many thanks to Poornima Madhava for clarifying. Will proceed to file the returns. Regards.
Hi again, I was reading another forum which says from 2013, there is no capital gains tax on rural agriculture land. Can anyone handled similar situation and share the information?
Oh is this a rural agricultural land? If yes, it is exempt from tax since rural agricultural land is not a capital asset for the purpose of income tax.
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