How much tax i need to pay for my house sell?

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Rajendra Babu (Querist)

18 April 2017 Hi,

I am a software engineer and my salary falls under 30% slab and I am availing tax benefit on Home Loan.

I purchased a house in May 2012 for 38.4 lakhs (through bank loan) and re-innovated the house in May 2015 with extra 65.0 lakhs (24 lakhs - personal loan and 41 lakhs I kept from my pocket which I transferred from Netherlands to India, bank transactions is available for the same).
Now I am planning to sell my house for 120 lakhs in May 2017.
Apart from above, I have spent around 2 lakhs for home loan insurance.

Also I am planning to purchase an another house for 75 lakhs(land with old house) + 4-5 lakhs (for registration charges) + 15-18 lakhs (for construction)
And I want to clear off my Home Loan (25L outstanding amount) + one of the personal loan (5 L).

After all these transactions do I need to pay any tax for selling my house? Please suggest.

Thanks,
Rajendra

ND (Expert)

18 April 2017 The calculation for capital gains will be as under:-
Cost of house 38.4
Renovation cost 65 It will be allowed only if you have the bills for the renovation expenses.
Total cost of house 103.4
Sale Price 120
Capital Gains 16.6 without giving the benefit of indexation. If the indexed cost is taken then the gain will be even less.
Cost of new house to be purchased 75
Thus there is no taxable capital gains.

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