Interest income on sale proceeds of home

This query is : Resolved

Vaid Mohammed (Querist)
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03 August 2019 Hi
I am a salaried who falls in 30% bracket. I currently have a home which I am planning to sell. I expect to get around 1.10 crore for my house and I don't have any other house.
If I keep this sell proceeds in bank I would be getting around 70,000 interest per month. Will it be taxed? What if I don't purchase any home and continue to go on rented home by paying rent from this interest? Still will I be taxed for whole money or for partial?
Please advice in detail.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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04 August 2019 You will I be taxed for whole money. Claim HRA deduction for rent paid.

Vaid Mohammed

Vaid Mohammed (Querist)
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04 August 2019 If I take payment in my wife's name then?

Gokul Sharma

Gokul Sharma (Expert)
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04 August 2019 this is not as per law.
on sale of house you will have to pay capital gain tax.
interest income is also taxable.
Bank also Deduct TDS On Interest On FDR.
HRA Exemption can be claim for payment of rent to owner.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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04 August 2019 Agreed with the above reply.

CA PARTH SHAH

CA PARTH SHAH (Expert)
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07 August 2019 Capital gain from sale of house shall be the difference between the sale proceed and the indexed cost of acquisition ( in case of Property held for more than 24 months) or actual cost of acquisition

So only gains will be taxable and not the full sale proceeds.

FD interest is fully taxable. Rent exp is not deductible from the interest.

Rent can be claimed as exempt allowace from salary