Home loan and short term capital gains

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haragopal (Querist)
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17 November 2013 I have taken a home loan for under construction flat in Nov2010 The flat is completed and I possession in Nov2013 so far I could not avail the income tax benefit for the pre emis of loan I wish to sell off the flat immediately 1)now if I get short term capital gains in this sale should I pay tax on the gains if I invest the amount for purchase of another flat within one year? 2)After sale can I avail the pre emi interest I paid for the loan in successive 5 years?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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17 November 2013 1. there is no exemption available on short term capital gains.

2. I don't think you can avail the benefit of five installments pre-emi interest once the house is sold. However, you can add this interest to the cost of asset and reduce your short term capital gains.

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