Is ltcg applicable &deduction of housing loan permissible

1. It cannot be treated as Business income. For the lady its an investment.

2. Note that as per sec. 80C(5): Tax Deduction u/s. 80C claimed would be reversed if Property sold within 5 years from the end of financial year in which such property is acquired by her. The aggregate amount of tax deduction already claimed in respect of previous years shall be deemed to be the Income of the Assessee of such year in which the property has been sold and the Assessee shall be liable to pay tax on such income.

3. Some banks still levy PRECLOSURE charges on certain types of home loans, specifically before completion of tanure 5 years.

4. "(a) will it be a  LTCG if sold after 36 months or (b)STCG if sold before 3 years" :: Correct

  Thanks, as per the reply above "Note that as per sec. 80C(5): Tax Deduction u/s. 80C claimed would be reversed if Property sold within 5 years from the end of financial year in which such property is acquired by her."

Please read carefully:

"The aggregate amount of tax deduction already claimed in respect of previous years shall be deemed to be the Income of the Assessee of such year in which the property has been sold and the Assessee shall be liable to pay tax on such income."

It means the exemption taken in previous years is added back to income of the year in which it is sold.

No changes in old returns.