01 June 2015
I booked a Second house in year 2012 from a builder and got possession last year (2014), am availing all tax benefits like interest on home loan I paid during the construction phase etc.
My query is if I sell this flat (second house) with-in first 5 years of purchase "to buy another flat" in a different location do I need to pay tax on sales of fixed assets or on the Income tax benefits I received from home loan? Will 5 years be calculated from the date of possession or from the date of booking the house under construction linked plan?
04 June 2015
Dear Ram sir, Thanks for the clarification.
If within 5 years of possession, I sell the house to buy another flat I believe tax will be computed only on the capital gain in excess of the cost of the new house; right?
I believe the sale will not have any impact the tax benefits I have already availed for 2 years; if I am buying a new house within 3 years of sale, kindly confirm?
CAclubindia
