Non taxation of long term capital gain
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
28 November 2011
Mr. A & his father purchased a flat "PQR" in F.Y. 2002-03 that he is going to sale in F.Y.2010-11 . his father died in F.y. 2010-11 nobody is staying in that house since 4 years.
In F.Y.2007-08 Mr.A & Mrs. A took loan for 20 years for purchasing flat "xyz" where all are staying in house xyz from 4 years.
Can capital gain (arosed by sale of flat "PQR")sill be used for paying off the loan of flat "xyz"?
or
capital gain will be taxable in hands of Mr.A?
In F.Y.2007-08 Mr.A & Mrs. A took loan for 20 years for purchasing flat "xyz" where all are staying in house xyz from 4 years.
Can capital gain (arosed by sale of flat "PQR")sill be used for paying off the loan of flat "xyz"?
or
capital gain will be taxable in hands of Mr.A?
28 November 2011
It depends upon the fact that in whose name , share of Mr. A's father has been transferred. If presently whole of the "PQR" belongs to A , he only will be liable for capital gains.
There is no exemption from capital gains tax in case the sale proceeds are utilised in repaying the loan taken for house XYZ.
However, A may purchase another residential house "uvw" to get capital gain exemption.
There is no exemption from capital gains tax in case the sale proceeds are utilised in repaying the loan taken for house XYZ.
However, A may purchase another residential house "uvw" to get capital gain exemption.
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