Income from sale of property and reinvesment in property
ravi
(Querist) 04 September 2011
This query is : Resolved
Dear all,
My wife had a flat which was bought in July 2009 and was sold in Sep 2011. there was housing loan for the flat and she was taking the Home loan interest and principle rebate for FY09-10 and FY10-11. I want to knw procedures and laws for the following.
a) there was profit on selling the flat, how is it computed, is it the difference of amount in registration papers?
b) I have also purchased a second property on CLP basis in noida, Can I show reinvestment of profit in property. I had booked flat in noida in Feb2011. How many months back investment can help me in saving tax.
c) since its a CLP basis, i will be paying money in every 3 months or so, still should I be worried abt the backdated clause of reinvestment in property?
d) since my wife was claiming rebate on interest and principle, will she be required to pay the tax if property is sold before 3 years? How to save tax in this case.
Ples provide information in each regard.Tht will be realy needful and greatful.
A V Vishal
(Expert) 05 September 2011
a) there was profit on selling the flat, how is it computed, is it the difference of amount in registration papers?
Ans. It is a short term capital gain and the difference between the sale & purchase consideration is the gain and the same is taxable.
b) I have also purchased a second property on CLP basis in noida, Can I show reinvestment of profit in property. I had booked flat in noida in Feb2011. How many months back investment can help me in saving tax.
Ans. Short term gains do not qualify for re investment deductions.
c) since its a CLP basis, i will be paying money in every 3 months or so, still should I be worried abt the backdated clause of reinvestment in property?
Ans. Does not arise
d) since my wife was claiming rebate on interest and principle, will she be required to pay the tax if property is sold before 3 years? How to save tax in this case.
Ans. There is no other alternate then paying taxes.
R.Ramachandran
(Expert) 05 September 2011
Yes, I fully agree with the views expressed by Mr. Vishal.
girish shringi
(Expert) 05 September 2011
I do agree with Mr. Vishal partially because in (d) to get rebate on the interest whether it is STCG or LTCG is allowed,however the index won't be allowed as per LTCG,thats right.
