Income tax for flat sold at loss

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If you sell a property for less than you paid, even after accounting for inflation (indexation), you generally won't owe capital gains tax. While the buyer will likely deduct Tax Deducted at Source (TDS) when you sell, you can claim this back when you file your Income Tax Return (ITR).

Vinay

Vinay (Querist)
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25 October 2022 I had purchased a flat at 50L Pune in 2013. Did not apply for any IT benefit in ITR. Have paid total 65L to bank against principle and interest to clear the loan.
I am selling it at 59L now, at loss of 6L.
Do I need to pay any income tax on this?
Is TDS applicable and can I claim it back?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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25 October 2022 Even after indexation, you are at loss, so no capital gains liability. Or no need to pay any income tax.
Yes, TDS will be deducted by purchaser, which you can claim while filing relevant ITR.

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Vinay

Vinay (Querist)
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25 October 2022 Thank you so much Dhirajlal ji. Appreciate your prompt reply !

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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26 October 2022 You are welcome ..

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