Sale of Land to close Another Land Loan

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M Srinivasa

Manager

22 Points Posted on 03 July 2011

Hi,

I have two plots of land in Bangalore - Plot-A and Plot-B, and a House-C.

I have two loans - One for Plot-A and a Home Loan for House-C.

I purchased Plot-B 17 years ago, and there are no Loans on Plot-B, and I am now selling the same.

Can you please tell me if I can use the sale proceeds of Plot-B to close either the Loan on Plot-A or the Home Loan on House-C, and avoid Capital Gains Tax ( out of selling Plot-B?

The Home Loan on House-C was sanctioned in Aug 2010 and the Final Disbursement happened in May 2011. The house is yet to be completed.

regards,

Srinivasa M

Replies (5)

Sunshine

Helping All

6366 Points Posted on 03 July 2011

i dont think this is possible..

u can claim an exemption u/s 54 F by prchasing or constructing another house propery before 1 year or within 2 years of sale of house..or u can also look fr exemption u/s 54EC by investing in certain securities....

Regards!

Vijay

Adamo Studio

1589 Points Posted on 03 July 2011

Originally posted by : Sunshine...
	i dont think this is possible.. u can claim an exemption u/s 54 F by prchasing or constructing another house propery before 1 year or within 2 years of sale of house..or u can also look fr exemption u/s 54EC by investing in certain securities.... Regards!