Namaste all,
Will you pls. guide in subject matter ? I have bougt a House with 67L with 55L loan in 2017 and sold the house in 2024 in 75L with balance loan transfer of 24L. how to show it in ITR, will it lead any Capital gain tax, if I buy a new house this year ?
Early reply will be highly appreciated.
Thank you in advance.
With Best Regards,
you will need to report this capital gain Rs.8 lakhs in your income tax return (ITR) under "Capital Gains". Since you held the house for more than 2 years (2017 to 2024), this is a long term capital gain.
Long-term capital gain on a house property is taxable at 20% with indexation benefit.
Indexation benefit:-
You can reduce the taxable gain by applying indexation (adjusting purchase price for inflation).
Cost inflation Index for 2017-2018 = 272
Cost Inflation Index for 2024-2025 = 348
Indexed Purchase Price = Rs.67Lakhs X (348/272) = Rs.85.73 lakhs
Capital Gain (with indexation) = 75 lakhs - 85.73 Lakhs = Rs.10.73 lakhs (loss)
Since there is a loss after indexation, there is no capital gain tax liability.
Buying a new house: - If you buy a new house this year, you will not have capital gain tax liability from this sale because hou have incurred a loss after indexation.
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