Loan taken for housr

When calculating long-term capital gains on a sold house, a housing loan taken for its purchase is generally not included in the cost of acquisition. Instead, you should use the purchase price, adjusted for indexation. While the loan itself isn't part of the acquisition cost, you can claim deductions for the principal paid under Section 80C and for the interest paid under Section 24(b) of the Income Tax Act. Loans for repairs and renovations may be treated as costs of improvement.