Capital Gain

In my opinion for calculation of the gain in case of sale of house the registration of flat is not important.What is important is the date on which the possession of the flat was taken by you.Period of holding shall be count from that date. 

Interest on loan taken for purchasing a house property as self occupied one interest can be claimed u/s 24 as allowable expense subject to maximum of Rs 1.50 lacs

1.In order to be treated as long term capital asset the relevant factor is the period of holding of the asset before the date of its transfer by the assessee.In your case you are holding the asset for 5 years which is more than 36 months. So the gain is going to be LTCG.

 2.   The interest expense can be taken as cost of acquisition as it is  incurred by you for acquisition of asset.

3.The capital gain from above house will be exempt if you purchase anew house U/s54 if your previous house was assessed under income from house property and was residentisl house.As you are buying a house for 25 lakhs which is more than capital gain whole capital gain will be exempt.

Apart from purchasing new house you can invest the above gain in specifird bonds issued by REC or NHAI and can avail tax exemption.

Regards,

Ramesh Kr Verma

Thanks for the response. I had taken possession after paying last installement 2 years ago. Will this still be LTCG or STCG ?