Long term capital gain tax on sale of house property

Ashok Chopra (Head- Business Finance & operations)   (26 Points)

27 February 2017  

 

Dear All,

Request all of you to guide me on Long term capital gain tax. The fact of  the case are :A sold his house during June 2016 for Rs. 40 Lacs and bought another house in same month for Rs. 35 lacs and paid Stamp duty of Rs. 2.45 Lacs in Delhi State. New house purchase funded thru housing loan of Rs. 28 lacs and balance Rs. 7 Lacs own contribution. Balance Sale proceeds Rs. 33 Lacs(Rs.40-7 ) were utilised for other various purpose. Pls. let me know: (a) Is it necessary to buy house entirely from sale proceeds to avoid LTCG tax? If yes options availble to save tax. (b) Can I claim deduction under sec. 24 income from house property for Intt. on housing loan paid during FY?