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venkat b. (owner)     23 July 2017

Capital gains tax on property sale under distress condition

Sir, 

I am selling my property inherited from my  father who expired intestate and the property is self acquired by my father. Now, I had incurred lot of personal expenditure to repair and to meet personal expenses and availed various  loans from banks etc. 

Now, I realised that it is better to sale the property and come out of debt trap. So, I request you to help me understand the capital gains calculation under these circumstances. As I may not be able buy new property to save on capital gains and if I have to pay tax , then i would not be left with much  balance. 

 

regards and thanking you in advance .

 

venkat s batchu. 

 



Learning

 2 Replies

Ms.Usha Kapoor (CEO)     23 July 2017

Igf it is a distress sale and you sustain loss you can set off against loss in other losses of property. Under these circumstances there wouldn't be capital gain Tax.

venkat b. (owner)     15 January 2018

HI, 

   I have also sold my parental property to meet personal needs and credit card payments and other bank loans availed as I am out of occupation. 

   Also I raised a loan of 15 lacs by mortgaging my personal property to acquire a part of my brothers share (due to partition requirements). Now, can i claim the interest paid to the bank as acquisition cost of my ancestal property (additional land apart from my share of land). 

 

Regards. 

venkata s batchu. 


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