Short Term Gains on House Property

This query is : Resolved

Pooja (Querist)
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26 May 2009 Hello, I have sold my house within the 3 year time frame, hence it is a short term gain. I had taken a home loan for the same and had claimed the deduction of 150000.

If i am not wrong, in case the house is sold within 5 years, the interest deduction claimed will have to be reversed ? Is this correct ?

What section mentions this ?I am unable to find the same

taxindiaconnect

taxindiaconnect (Expert)
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26 May 2009 Your undersatanding is not correct. There is no provsion in section 24 of the Act for reversal of interest deduction. The reversal provsions are for benefit of capital gains taken on a long term capital assets under section 54 and 54F of the Act.

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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26 May 2009 agreed with the expert

Deepak Goel

Deepak Goel (Expert)
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27 May 2009 There is no section for resersal of interest deduction

Pooja

Pooja (Querist)
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27 May 2009 hi all, thx for your replies. So this implies even in the year when I sell my house I can claim the interest that I pay on my home loan ??

Vipul J. Bhavsar

Vipul J. Bhavsar (Expert)
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27 May 2009 Yes, you can claim the interest which you have paid till the date when you sell your house.

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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27 May 2009 But the deduction of the principal paid u/s 80C will get reversed.

Pooja

Pooja (Querist)
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28 May 2009 Nitin, under what section, do I put the 80C reversal ?

Say, my current year 80 are 110000, do I put the previous 80C benefit of principal as reversal u/s 80C?

Is it ok to put
current year invt as 110000
(-) reversal of princi 10000
total benefit 100000

Or I have to straight away add the 10k to my income..u/s ?

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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29 May 2009 You will add 10K to your income u/s 80C itself.

Pooja

Pooja (Querist)
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31 May 2009 thx to all for the replies.

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