Capital Gain to Repay Housing loan

Deduction in respect of Repayment of loan does not apply for Capital gains.

regards,

ratan

i think he'll have to pay capital gain tax on first home .....transaction on second home have no link with it...........

I think Aksh*ta is right...

he will get only deduction u/s 80c for repayment.otherwise no exemption for capital gain

because capital gain exemption requires investment of sale proceed or gain in new purchase or construction  and does not include repayment of loan

I agree with all of them but here have a small figit, if the second house has been purchased less than a year back then you can be entitiled to the exemption else no.

Dear all,

Thanks for your prompt reply. I also have the same opinion.

Mr. Nicky, Can you please further elobrate exmption if house is purchased less than a year back.

Thanks

Section 54 allows you to claim exemption if you have purchased the house one year prior or 2 years after the date of trasnfer...

Hence there can be exemption under section 54 if the second house the house which is not sold is purchased within one year prior from transfer                                                                                                                                                       
 

regards,

ratan

one thing more you should note that deduction u/s 80C on repayment of house loan  is to be reversed if the house sold before the completion of the five years from the end of the Financial year in which house was acquired  or purchased.

https://www.simpletaxindia.org/2010/02/capital-gain-house-sale-reverse-section.html

there is no deduction available in respect of transactions of such nature under head Capital Gains.

however we can refer to section 80-c for deduction in respect of repayment of housing loan.

Dear, Mukesh the Capital Gains will not be exempted in any case except by sections 54 to 54GA, under the Income Tax Act.

The utilising of the money for repayment of loan does not reduce your capital gain tax. Even you cant claim deduction under section 80C, from this income.

If u have any other income, then you claim 80 C deduction against it as to the extend of Principal portion of the loan repaid. Otherwise you won't be getting any of the benefits.

Hi friends,

I request more clarity on capital gain tax and home loan.

I have old house in mumbai purchased in 2005  with loan 8 Lac, value now is 40 lacs, purchased at 15 Lacs.

 Purchased new house in Bangalore, registration in Feb 2010 and got possession in Sept 2010. On new house home loan is approx. 37 lacs.

I would like to sell old Mumbai house and repay  the loan of new  Bangalore house.

Is that capital gain eligible for tax benifit?.

If it is taxable, how much is the capital gain

Thanks in advance for help.

regards

If not how much is the capital gain