Interest income on sale proceeds of home
This query is : Resolved
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.
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.
04 August 2019
You will I be taxed for whole money. Claim HRA deduction for rent paid.
04 August 2019
If I take payment in my wife's name then?
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.
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.
04 August 2019
Agreed with the above reply.
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
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
08 August 2019
Section 80GG rent deduction can be examined also subject to conditions
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