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Reversal of tax benefits from sale of home within 5 years

Tax queries 181 views 1 replies

Sumit Kumar Gupta

MBA

37 Points Joined February 2013

I bought a home in Oct 2013 for 29 Lakhs. Now prices have gone down and I am getting only 19 Lakhs. But I read somewhere

Home Loan - If you have purchased a house after taking out a home loan, and consequently sold the house within a period of five years, then there will be a reversal of any tax benefits that you have claimed under Section 80C. All tax deductions that you claimed under Section 80C in the previous years will become a part of your total income in the year of the sale of the house

Since I had taken a home loan for my flat and had completed all my loan in Oct 2016, but with above statement, do I need to wait for completion of 5 years to avoid reversal of tax benefits under Sec80C? ? Does that mean, I can sell this flat only in Apr 2018?

Please advise

Regards

Sumit

Replies (1)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

210533 Points Joined July 2016

Only after October, 2018; provided you had taken 80C benefit over the principal repayment of home loan, and if you do not wish to reverse the benefit in current year.