Tax free

Dear Sir,

Hope you are doing well !!

Home loan and Capital Gains Exemption are two separate things. You can claim the Capital gain exemption only if you use the money from the sale of the property to buy another house. The purchase of new house has to be done one year before the sale of the house or  2 years after the sale of the house.  The property should be bought in the name of the seller.  Income tax department is not concerned if you used the sale money for repaying the home loan or not.

In your case, you can not take any capital gain exemption on old property purchase.

However,you can claim tax exemption by using the amount you gain from selling property to buy bonds issued by NHAI and REC.The bonds should be bought within 6 months of the sale of the asset. The maximum amount you can invest in this way is Rs. 50 lakh. It will lock your money for 5 years.

It is advisable to take a phone consultation for detailed discussion.

What is the date of purchase of new flat?

Your capital gain in above flat would be 10.64 lakh.

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Thank you

Hello,

Exemption u/s. 54 for home loan repayment would be available if the new residential property is purchased within the time frame mentioned in Sec. 54, i.e. one year before or within 2 years from the date of sale of old residential property.

I hope that this answer satisfies your requirements.

Regards,

CA Hunny Badlani

What is the date of allotment of the new flat which was booked in Jan 2018?

If it is within the one-year time frame before the date of sale of old property i.e. Dec. 2019, then the exemption can be claimed u/s. 54.

Hi

The total capital gains on sale of old property comes to around 10.65 lacs which means 5.325 lacs each.

If such funds are invested in a new house property, you can claim capital gain exemption. If you are also contributing to property purchased in your wife's and son's name, you can still claim exemption.

The exemption shall depend on when the new property was purchased.

If the new flat was purchased in Jan 2018, capital gains exemption shall not be available. It could have been claimed if the new property was purchased after Dec 2018.

In this case, no exemption shall be granted.

If the new flat was purchased in Jan 2018, capital gains exemption shall not be available. It could have been claimed if the new property was purchased after Dec 2018.

In this case, no exemption shall be granted.

Dear Sir,

Here is my reply to your query:

Yes, your wife can repay the loan equals to her share in the property sold by you and your wife. She can claim the exemption from the capital gain taxability on her as per her share in the property held by you and your wife in the join name.

Thanks and Regards 

Divya Chugh 

Dear Sir,

Your wife will not be able to get any exemption.

The purchase of the flat should be within 1 year prior to sale in your case you got allotment in 2018 which must be considered as its purchase date and in such case it would be beyond 1 year and hence it wont be advisable to claim exemption on the basis of such purchase.

Exemption won't be available since the date of purchase i.e. the allotment date is out of the the timeframe of 1 year.

No. Your wife shall not be eligible to claim capital gain exemption.

No, your wife will not get any exemption.

Hello Sir,

You wife will not be able to claim any capital gain exemption.

The due date has been lapsed for all type of capital gain exemptions.