Short term capital gain on house sale

This query is : Resolved

Durga Prasad (Querist)
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24 February 2011 Hello all,
I have bought a duplex in sainikpuri, hyderabad in September 2009 for 48 Lakhs. Got it registered for 22 lakhs. Have taken a loan for 42.5 lakhs. Have spent on woodwork and other electrical equipment about 8 lakhs. All the money I spent was from my salary which I received after taxes were deducted. I am now selling the house for 57 lakhs. However, including the interest I paid to the house loan till now, the total cost is coming to 59 lakhs. But as per the law, I beleive the registered amount is taken into consideration and the rest is taxable. How should I avoid paying tax as financially I am not making any gains here. As the house sale is less than 3 years from the date of purchase, I cannot even claim exemption. Could anyone guide me in saving my hard earned money.

Vinod Kumar Mathuria

Vinod Kumar Mathuria (Expert)
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25 February 2011 Dear Prasad

Pls. specify that you have received all the money through cheque. for some in cheque or some in cash if not received in cheque than take minimum amount in cheque so that to manage your income tax, because you bought you home by Rs. 48 lakhs, and registered for Rs. 22 lakhs same case can be possible in sale also.

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