Long term capital gain and tax implication

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 November 2012 I was having a flat in Pune which was purchased for Rs.8.52 Lakhs in Aug-2005. I sold the same in Nov-2012 for Rs.34.20 Lakhs.

I was having another housing loan for Rs.45 lakhs. This loan started in Jun-2011. Due to high EMI, I decided to repay around Rs.30 Lakhs for this loan.

Please let me know the following:

1. Do I have to pay capital gain on the flat sale.
2. Is there any provision for deducting the amount repaid for the housing loan
3. Is the indexation method is better or non-indexation method better for capital gain tax calculation

Amol S Joglekar

Amol S Joglekar (Expert)
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29 November 2012 01. Yes, you need to pay the capital gain tax as applicable subject to however your investment in new house or capital gain bonds
02. There is a recent judgement by Chennai TRIBUNAL for inclusion of interest paid on housing loan in the cost of acquisition... but it is highly risky to follow this judgement.. as it is by Chennai and your property jurisdiction is Pune.
03. Indexation method should be better.

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