Ltcg

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 October 2016 Hello,

Can u pl help me with some suggestion on my problem related how to get the exemption on the LTGC?

I have purchased my first house in Sep 2004.
Now in July 2015 I have purchase a new house, being it was offered with some special discount just for one day, I have booked the new flat.
For purchasing the new flat I have to take a loan of 90 Lacs and I have did so considering old flat will be sold and the loan will be cleared-Off immediately.
Now, the unfortunate situation arised - Property market collapsed ...and I have failed to sell the property within one year period. but yet i have to feed my liabilities there is no rescue paying the heavy EMI per month with this painful situation one year period of using the LTGC for new flat has been crossed.
Now how to go about, suppose fortunately If i get a buyer now, then what?
*How can I clear my loan ?
*Still LTGC of old flat can be used to clear my heavy loan?
*Or what is the way out It will be heavy loss to me in this situation.
Pl guide.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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19 October 2016 1 Work out the indexed cost of old house from that amount you pay part of the loan. Capital gain amount you deposit it in capital gain bonds 54EC for 3 years and then repay the loan.
2 As one year lapsed you can't clear the loan out of LTCG.

Querist : Anonymous

Querist : Anonymous (Querist)

20 October 2016 Thanks Mr.Seetharaman fo the reply.
That means by doing all this, end of the day i have booked a loss out of it because till date I have paid an Interest of Appx13 lac on my loan.
It all happened because of poor market condition no one interested to buy, thinking property prices will come down.
Now there are two more questions
*While purchasing the old flat I have paid some proportionate of the payment from my mothers savings and she is registered co-owner of the old flat.
She is senior citizen can some sought of provision is available for tax exemption being she is a Co-Owner.
*If some provision is available then how should i take the payment from the purchaser?? I believe Some proportionate payment should be taken on her name.
*I have purchased the old flat for 16 lac, within the period of 12 years thrice I have to spend atleast 25 Lac more in renovating and repairing it being Top floor. Can I add this amt in the purchase cost while calculating the indexed cost? If yes then how,because it is done thrice in this 12 years long period.

Pl guide.

Thanks.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 October 2016 Yes take some proportionate payment in her name.
Only renovation cost can be added, add it in the respective years for indexation.

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