long term capital gains tax on property

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shivani (Querist)
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09 June 2011 Cn someone pls advise me on the following and also provide official links to corroborate:

1. When i sell a property is the dt of purchase the dt i started paying for it or the date i got the posession of the property.

2. in case i had the acquired the property through a home loan and therefore paid interest , then can i include the interest paid in the cost of the property? for eg cost of the property 14 lacs, int on home loan paid over 7 years amounting to 5 lacs. If no, then is there anyway i can include the 5 lac interest paid as a cost in some form??

3. can i use the long term capital gain towards payment of another home loan in order to avoid a long term capital tax

CA SANDEEP BANSAL

CA SANDEEP BANSAL (Expert)
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09 June 2011 1. hi shivani , date of documents ie registry or sale deed is the date of purchase.

2. interest on home loan is a revenue expenditure and can not be part of cost of property.yes u can include the interest part if and only if u havnt taken the possession of property and it is put to use after that.

3 loang term capital gain can be used toeards payment of home loan if u have purchasd another house with in 1 year before the sale of this house.

shivani

shivani (Querist)
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10 June 2011 thank you , pls note a follow up question.

I have a flat (cghs) which is currently not registered . but i have an agreement of purchase and a certificate of posession, so in such a case what dt would be considered as dt of purchase.

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CA SANDEEP BANSAL (Expert)
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10 June 2011 nice follow up question ...........in that case agreement date is the date of purchase if the house is buildup and if not date of possion is the date of purchase.

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CA SANDEEP BANSAL (Expert)
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10 June 2011 nice follow up question ...........in that case agreement date is the date of purchase if the house is buildup and if not date of possion is the date of purchase.

shivani

shivani (Querist)
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11 June 2011 thank you mr bansal.

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