Tax benefit from house loan

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This query is : Resolved

Mahua Banerjee (Querist)

31 July 2007 Hi,

I had bought a property (@ Rs. 9.25 Lakhs)in Jan-2006 by taking home loan & claimed the tax benefit (principal as well as interest amount) for the financial year April 06 to March 07.

Now I have sold the property (@ Rs. 11.25 Lakhs) on 21 july 2007.Please clarify the following :-

Q1. Do I need to refund the tax benefit of the last financial year in this current year i.e. april 07 to March 08.

Q2. Do I need to pay capital gain tax? How it will be calculated?

Q3. If a property is sold after 3 years of buying the same

a. Income tax benefit obtained in these 3 years needs to be refunded back or not ?

b. will it fall under capital gain tax if the profit earned by selling the property is invested again in another property?

Q4. Please suggest a qualified CA in Navi Mumbai, Vashi or Koperkhairane

ravi kanth

ravi kanth (Expert)

31 July 2007 hi,

U need not to refund any tax benefit if u sold it in july 2007 or after 3 years. u were the owner and u borne the expenditure at that time. u calculate only capital gains for Previous year 2007-08.
i want to ask u one silly question., if u sale it in july 2007. will govt refund u the tax paid on income from house property. does it repay u if u sell it after 3 years. i hope u got it.
thank u

Mahua Banerjee

Mahua Banerjee (Querist)

07 August 2007 Hi,

Kindly confirm wether I have understood the clarification properly or not :

If a house is sold after 3 year of buying the same, then there is no need to refund the tax benefit back to the Govt.

Another question :-
If I invest the sale proceed of the house sold (after 3 years of buying the same)in buying another house, do i need to pay capital gain tax?

JAI VATNANI

JAI VATNANI (Expert)

10 August 2007 IF THE ENTIRE CAPITAL GAIN AFTER INDEXATION IS REINVESTED IN ANOTHER RESIDENTIAL HOUSE THE CAP.GAIN WD BE EXEMPTED U/S.54

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