Dear Experts
i got the different opinion about tax exemption on the long term capital gain by selling of residential property and it made me not coming to any conclusion.
Some experts say that Total sale consideration to be invested in new Property and some says that only the Capital Gain with indexation benefit to be invested in new property.
So please clear me about this issue and also the impact of home loan in the property sold and purchsed. For clarification i am taking an example...
May 2010 : purchase of home in 9.5 L (home loan taken 8.0 L from LICHFL)
Amount spent in Transfer, Registry, some repair : 0.5 L
Apr. 2014 : Sell of home in Rs. 27.0 L (out of this Balance of Home Loan paid = 6.0 L)
After indexation benefit the LTCG will be around Rs. 13 L
I want to purchase a underconstruction flat completing before Dec 2014.
Ques 1. is there any effect of Home loan taken in the calculation of LTCG.
Ques 2. How much amount i need to invest?? LTCG 13 L or Total Sale Consideration 27 L.
Ques 3. If i purchase a house of 25 L and i take home loan of 20 Lac, in this case can i save the Tax on My LTCG.
Ques 4. for saving LTCG Tax.. can i invest some money in purchase of new house and rest of money in Capital gain Bonds?
Ques 5. if i purchase new house for my Wife Name, can i get the exemption on the LTCG Tax?
Ques 6: can i invest the amount in 2 properties partialy to get LTCG Tax exemption.
CAclubindia
