Sale of Land to close Another Land Loan

M Srinivasa (Manager) (28 Points)

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