Repayment of home loan

if a person sell of land and repay his entire home loan. what treatment is in income tax.
Replies (3)
Quick Summary
If you sell land to fully repay your home loan, you'll need to pay income tax on the profit made from the land sale, which could be short-term or long-term capital gains tax. However, you can claim deductions on your home loan repayment under Section 80C for the principal amount (up to £150,000) and Section 24b for the interest (up to £200,000).

You need to pay income tax on sale of land.


housing loan:
principal portion maximum upto 150000/- under 80c
interest portion maximum upto 2lacs exemption available

You need to pay Capital Gain tax on profit portion of upon sale of land.  gain can be short term or long term.  

if there is no gain than no need to pay tax. 

however on repaying housing loan you will get following deductions / Exemptions under IT Act 1961.

u/s 80C  : principal portion maximum upto 1,50,000/-

u/s 24 b : interest portion maximum upto 2,00,000/-

Capital Gain tax have to be paid on sale of Land. 

Further, you will get deduction u/s 80C for repayment if housing loan. 

Principal  amount upto Rs. ,1,50,000 exempted 

I 

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