what is long term capital gain if resident salaried man is having two houses. He sale one of the house 90 months after purchasing. He had taken top up housing loan for house maintenance.
he repaid most of the loan. How is capital gain calculated and how he can save tax?
Purchase value 10 lakhs
sale value 45 lakhs
Total home loan and top up loan for maintenance is 24 lakhs and outstanding 12 lakhs.
2nd property is also having loan 20 lakhs.
LTCG is calculated by difference of sale proceeds over indexed cost of acquisition along with improvement, if any.
Roughly speking, his LTCG is around 25 lakhs, which is taxed at 20% +cesses.
He can get benefit of section 54, 54Ec etc. to save the tax, i.e. by purchase of new house property or investing in Capital Gains Bond of NHAI/REC.
Kothari Jain Patil & Chartered Accountants
Pune
CA Inter
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