Long term capital gains
This query is : Resolved
13 August 2012
I had purchased a plot in 2006 and had sold it in Dec 2010. The capital gains on the same were put into a Capital gains account. At the same time, I have booked an apartment and have taken a loan for the same. The flat is due for possession in Apr 2013. Can I repay my housing loan from the capital gains in the Capital gains account?
13 August 2012
Dear Nidhish,
My 1 question to you is if you had deposited money in capital gain account then why did not you utilise it for the purpose of acquiring the house? Why you took loan keeping your own money in bank account?
My 1 question to you is if you had deposited money in capital gain account then why did not you utilise it for the purpose of acquiring the house? Why you took loan keeping your own money in bank account?
14 August 2012
Dear Vishnu,
It may happen at times that the amount of capital gains is not so enough to meet the sales consideration of the new property so the person may take a loan and then think to repay (not fully) the loan using the capital gains amount. Moreover, the Act says that the amount should be utilised to purchase another property, may it be on loan or not.
It may happen at times that the amount of capital gains is not so enough to meet the sales consideration of the new property so the person may take a loan and then think to repay (not fully) the loan using the capital gains amount. Moreover, the Act says that the amount should be utilised to purchase another property, may it be on loan or not.
14 August 2012
Dear Vishnu, To tell you frankly, I was not aware of the rules. When told to deposit the amount into Capital Gains account, did the same without realizing that it is not easy to take it out. The apartment purchased was of a higher value. Have taken a partial loan for the same. Paid the balance from savings. Now want to prepay the loan.
14 August 2012
Dear Nidhish,
It is always advisable to pay the money from balance deposited in capital gain account and balance to be paid from loan or any other source. In this case according to me you can utilise the money for repayment of loan as the main purpose is to purchase the asset. But portion towards principal only will be considered. Further you can not claim benefit of the same under sec 80c (Principal repayment of housing loan).
It is always advisable to pay the money from balance deposited in capital gain account and balance to be paid from loan or any other source. In this case according to me you can utilise the money for repayment of loan as the main purpose is to purchase the asset. But portion towards principal only will be considered. Further you can not claim benefit of the same under sec 80c (Principal repayment of housing loan).
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- PPF interest-As Exempt Income disclosure
- Under construction property in ITR
- Scrutiny and reopening of past returns
- Booth for sales promotion
- Upload Level ValidationITR3Category of Defect B/D
- Building tax payment deduction in rental Income
- F & O PROFIT REPORTING FOR AY 2026-27
- Difference in GSTR3B system generated which is correct and actual Payment it asks
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
