Repayment of home loan

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if a person sell of land and repay his entire home loan. what treatment is in income tax.
Replies (3)
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 


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