Capital gains on property

Hi,

This would be considered as short term capital gain since the property is being sold within 36 months of purchasing it.

Also, you cannot deduct repayment of loan for calculating capital gain.

Also, you can claim deduction of the expenses incurred by you for affecting the sale. That expenses are to be reduced from the gross consideration by you and then further deduct the purchase cost.

Thanks.

However I am incurring a loss on the payment of the loan for the said property. Will this not affect the profit that I have made?

Since the property is held for less than 36 months, it will be considered as STCG. However, if you can arrange the registration of the same afther 6 months, it may be considered as LTCG.

Any expenses incurred in purchase/sale of house like registration fee, commission etc may be deducted while calculating the income from sale of house.

There should not be any loss to you on account of loan. Intt paid on this might have been claimed as deduction in the year when you incurred the same.

Please note that if you have claimed any deduction towards repayment of housing loan, it will be treated as income in the year of sales.