House Property Sold in 3 years

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Pooja (Querist)

28 May 2009 Hi, I would like to know how is the principal claimed u/s 80c to be treated in case the house is sold before 3 years.

Hw should the reversal be accounted for and under what section and for which year ?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

28 May 2009 In 80 C the lockin period is 5 and not 3 years.
If the assessee has transferred the property with in 5 years of construction/acquisition, then the following shall apply:-
1)No deduction shall be allowed in respect of repayments made during the year of termination.
2) The aggregate of the deductions availed earlier in respect of such repayment of instalments shall be deemed to be income of the assessee in the year of transfer of property.

Pooja

Pooja (Querist)

28 May 2009 Thx for teh reply Mr Chackrapani. My question is under which head should the point 2 income be clubbed ?
Salary, Capital Gains where ?

And if I have made more than 1 lac investment , can I adjust the previous years deductions against my excess 80C investments ?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

29 May 2009 To be offered and taxed under the head 'Income from other sources'.

Adjustment referred is not permitted.

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