Tax plannng

This query is : Resolved

Amit (Querist)
Follow

06 January 2010 1st Property Loan Details :
Bank : ICICI Bank
Date of Loan : 30.06.2004
Loan Amt.- Rs 460000.00
Loan OS as on Today : 396000.00

2nd Property Loan Details :
Property Under Construction :
Property Registration already done
Date of Loan: August 2007
Loan amt not fully disversed (Total Loan Sanctioned 7.5 lakh)
Expected Possation Mid 2010

Personal Loan Through Credit Card - 1.5 lakh
Car Loan - 3.0 lakh

My Q : If Capital gain about 5 Lakh by saling the property No. 1, then Whether any possibility Income Tax Save on account of Capital Gain of Appox Rs. 6 lakh.

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
Follow

06 January 2010 You can save capital gain by investing the capital receipts in another house property.

Amit

Amit (Querist)
Follow

06 January 2010 I have taken lots of loans so i cant afford to purchase another house. is there any other way through which i can save CG tax?

Amit

Amit (Querist)
Follow

06 January 2010 please suggest

CMA. Dinesh S Adhikari, ACMA

CMA. Dinesh S Adhikari, ACMA (Expert)
Follow

06 January 2010 Invest you Capital Gain amount in "Capigal Gain Accounts Scheme"(CGAS) [section 54]

In CGAS you have to just invest your capital gain amount with declaration that you will purchase another house within 2 year from the date of sale of Property #1.

And within two year if you not purchase another house property then this invested amount will be taxable as capital gain.

I think till then you will have 2 year to pay all your loan amount or reduce your loan burden.

CGAS scheme is available in State Bank of India.

Regards!!!
Dinesh S. Adhikari

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now