I purchased one residential flat in June 19 on housing loan .now I wish to sell ancestral property and get share of sale proceeds in FY 20-21 in Aug 20 after sale.
My question is whether I can utilise the part sale proceed for repayment of housing loan for taking tax exemption on capital gains so utilised . and partly for purchase of capital bond
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Capital gains
Replies (19)
Quick Summary
Sinha
utilisation of sale proceeds of one flat in purchasing another flat is exempted under Sec 54.
From last finance bill.
there are two sections .
one is sec 24 where u can get exemption upto 1.5 lacs.
ANOTHER SEC 80EEA
THAT DEPENDS ON WHETHER U WANT TO TAKE HOUSING LOAN.
IF U TAKE HOUSING LOAN U WILL GET DEDUCTION FOR INTRREST PORTION.
IF U WANT TO AVAIL PMAY SCHEME 2.67 LACS IS EXEMPTED.
utilisation of sale proceeds of one flat in purchasing another flat is exempted under Sec 54.
From last finance bill.
there are two sections .
one is sec 24 where u can get exemption upto 1.5 lacs.
ANOTHER SEC 80EEA
THAT DEPENDS ON WHETHER U WANT TO TAKE HOUSING LOAN.
IF U TAKE HOUSING LOAN U WILL GET DEDUCTION FOR INTRREST PORTION.
IF U WANT TO AVAIL PMAY SCHEME 2.67 LACS IS EXEMPTED.
My replies to your queries are as under:
(1) You want to claim tax exemption for home loan repayment for 1st house purchased in June 2019 with sale proceeds of ancestral house in August 2020. There is no deduction or exemption for home loan repayment for capital gains tax. But Sec 80 C provides such deduction for home loan principal amount repayment up-to Rs. 1.5 Lakhs.
(2) Investment in specified bonds (NHAI or REC) for capital gains deduction u/s 54EC is available up-to Rs. 50 Lakhs with 5 years of lock-in period.
Reply by Mukherjee is confusing since your query is not for interest deduction u/s 24 or for investment in new home. For your information, home loan interest deduction u/s 24 is as under: [a] Self-occupied property [SOP]: Rs. 2 Lakhs (increased from 1.5 L wef AY 2015-16) & (b) Rented property: Actual interest without limit
Under 54 F property purchased within last one year is allowed for income tax benefit on capital gain .is it not correct ?
Sec 54F relates to LTCG from sale of asset other than residential house (such as shop or industrial godown/shed), where investment of capital gains is made in residential house, I don't think Sec 54F applies to your situation, if ancestral property is a residential house.
In fact, Sec 54 could apply to sale of residential ancestral property.
No my ancestral property is land
Sinha
if your ancestral property is land you cannot get any exemption.
cannot utilize for getting exemption.
so
my reply
he cannot claim any exemption .
mr. sinha
is that land agricultural land.
refer sec 54B.
if your ancestral property is land you cannot get any exemption.
cannot utilize for getting exemption.
so
my reply
he cannot claim any exemption .
mr. sinha
is that land agricultural land.
refer sec 54B.
No ,it is urban land
Ok then u can't utilize the sale proceeds to get exemption .
Within last one year means? Last FY ?
On urban land (non-agri) selling , proceeds you have to invest after sale happens under 54F.
On urban land (non-agri) you can invest maximum upto 50 lakhs in capital Gains Bonds NHAI REC under 54EC within 6 months.
On urban land (non-agri) you can invest maximum upto 50 lakhs in capital Gains Bonds NHAI REC under 54EC within 6 months.
Ok last fy.
then u can can utilize it..
provided u invest it in nhai bonds...
then u can can utilize it..
provided u invest it in nhai bonds...
Sale is in Aug 2020 and purchase in June 2019.
The gap is more than one year.
And therefore no benefit under 54F
As per my earlier reply, you go for 54EC deduction (by investment in CG bonds)
----
Those who copy paste reply of other members, don't know what fun getting ...
The gap is more than one year.
And therefore no benefit under 54F
As per my earlier reply, you go for 54EC deduction (by investment in CG bonds)
----
Those who copy paste reply of other members, don't know what fun getting ...
It's not copy paste..
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