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U/s 80c

raja (owner) (86 Points)

05 April 2018

Dear Sir,

I purchased a house in Jan 2013 for Rs 13.50 Lakhs by availing a home loan from SBI as my mother as co-borrower. In Jan 2018 I sold the property for Rs 12.00 Lakh.

My Query :

1. Is deuction u/s 80c is valid to me and my mother ?

2. Is loss of Rs 1.50 Lakh is set off under any other head ?

Thanks in Advance.

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4 Replies

Sarath Rajendran (Nil) (2791 Points)
Replied 05 April 2018

Loss under house property can be adjusted against any other head of income

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Sarath Rajendran (Nil) (2791 Points)
Replied 05 April 2018

Sec 80 c deduction applicable to both owners with respect to the following conditions

The very first condition is the house property has to be bought by the individuals jointly, and this should be in their joint names.
The share of each holder should be clearly mentioned so that there is absolute clarity on the percentage ownership of each co-owner. Each one share of deduction as per 80 c apportioned on the basis of share of ownership in the property but the maximum limit 1.5 lakhs will exists

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Rahul Prajapati (Student) (2282 Points)
Replied 05 April 2018

Your Capital Gain Calculation (Indexed Purchase Price = Purchase Price * (CPI for current year / CPI for year of purchase)

Sale Considertion 12,00,000

ICOA

(13,50,000*272/200) 18,36,000

6,36,000

The Income Tax does not allow Loss under the head Capital Gains to be set off against any income from other heads – this can be only set off within the ‘Capital Gains’ head. Long Term Capital Loss can be set off only against Long Term Capital Gains. Short Term Capital Losses are allowed to be set off against both Long Term Gains and Short Term Gains.

So, you can't set off your LTCG

Sec 80C

The equated monthly installment (EMI) that you pay to repay your home loan consists of two components

- Principal and Interest.

The principal qualifies for deduction under Section 80C. Even the interest can save you significant income tax, but that would be under Section 24 and section 80EE of the Income Tax Act.

So if you have an outstanding home loan in your name, then the repayment of the principal amount made by you in a financial year can be claimed as deduction under Section 80C.

You can avail Deduction us 80C

ALL CALCULATION IN PROPORTION OF SHARE IN HOUSE PROPERTY

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