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Tax implication while buying a new flat

Dibyendu (Consultant) (162 Points)

28 March 2014

Hello,

I have taken a loan and bought a resale flat. It is understod that repayment of home loan both interest and principal will be considerd during tax calculation. I would like to know is there any way to declare it as fixed asset. Is buying a flat is treated as income?

Can anybody help please.

Dibyendu,

Kolkata

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6 Replies

CA Deepesh Ruhela (Keen to Learn) (3271 Points)
Replied 28 March 2014

No sir buying a flat is never treated as income. It is always a Asset.

Dibyendu (Consultant) (162 Points)
Replied 28 March 2014

Thanks for your reply. Is there any place where I can declare while ince tax filing? Even if there is no tax liability on purchase of new flat, will NOT be a fixed asset?

Please reply.

Dibyendu,

Kolkata.

CA Deepesh Ruhela (Keen to Learn) (3271 Points)
Replied 28 March 2014

If you are filing the ITR -4 (Income from bussiness or profession income) and you are liable to maintain accounts as per section 44AA, then Fixed Asset amount sholud be declare, Otherwise not.

If such property(flat) is let out during the year. than under house property head,detail of such property is required to filled.

Regards

Dibyendu (Consultant) (162 Points)
Replied 28 March 2014

Thnaks once again.

I am NOT filing ITR4. I will be filing ITR2. What should the scenario here?

Thanks,

Dibyendu

Kolkata

CA Deepesh Ruhela (Keen to Learn) (3271 Points)
Replied 28 March 2014

Is it self occupied property? then show the detail of property under the "head income from House Property" normally detail is Address of such property(flat). and claim the exemption of Interest on Housing loan.

or if it is let out then still you need to provide the same detail as expalin above i.e address.

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