Capital gains

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This discussion clarifies how sale proceeds from an ancestral property can be used to reduce capital gains tax. While direct repayment of a housing loan for a previously purchased flat doesn't qualify for capital gains exemption, the principal amount can be claimed under Section 80C up to £1.5 lakh. For tax exemption on the capital gains themselves, investing the proceeds in specified capital gains bonds (like NHAI or REC) under Section 54EC is the recommended route, with a limit of £50 lakh and a 5-year lock-in period.

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superintendent
34 Points Posted on 25 February 2020
Kapadia ji thanks for reply
if gap is less than one year ,the benefits of capital gain can be availed. I think also in case repayment of housing loan in respect of purchase in June 2019 .m I right ? this benefit is in addition to investment in CG bonds
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On 25 February 2020 at 09:12
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17269 Points Posted on 25 February 2020
Repayment of housing loan is independent matter and has nothing to do with sale of ancestral property.

Like normal housing loan deductions under 24(2) and 80C you continue to receive on residential flat bought.
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On 25 February 2020 at 13:52
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superintendent
34 Points Posted on 25 February 2020
Kapadia ji ,how can take benefits of capita gains for building purchased within last one year . In other words capital gain has been utilized for repayment of housing loan that had been taken for purchasing the building prior to sale of ancestral land. All activities are completed within one year of purchase of building.
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On 25 February 2020 at 19:28
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17269 Points Posted on 26 February 2020
That's what Income Tax Section provides for. There is nothing to worry for. You absolutely get Deduction
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On 26 February 2020 at 20:15
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Profession
28271 Points Posted on 29 February 2020
.


Invest in Ccapital gains bond.
sec 54EC
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On 29 February 2020 at 07:34

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