Hi, I bought a home in 2016 NOV agreement value of 41 lacs...Selling it in 2020 December at 45 to 50 lacs. I am planning to buy another house by January 2021. For my earlier home I had taken housing loan of 30 lacs and claiming tax deductions under 80 c and section 24 as well. I just wanted to know whether can I sell it in this year and buy new property immediately? Will these reverse my tax deductions claimed for last 4 years even if I but new property immediately? Regards.
Dear Sir,
Hope you are doing well !!
The tax deduction claimed for the principal repayment, stamp duty and registration under Sec 80C are reversed and the amount becomes taxable in the year of sale. Only the deduction of the interest payment under Section 24B is left untouched
It is advisable to take a phone consultation for detailed discussion
Dear Mam,
If you are availing deduction of home loan installment under 80C then the condition is that you should not sell the property for atleast 5 year otherwise the deduction previously claimed will be considered as part of your income in that year.
Thanks & Regards
Shiv Kumar Agarwal
Section 54: Profit on sale of property used for residence:
Capital gain arising on transfer of a residential house is exempt u/s 54 if such capital gain is reinvested. The capital gain is exempt if the following conditions are satisfied:
1) Purchase of ONE residential house in India within 1 year before or 2 years after the date on which transfer took place OR
2) Construction of ONE Residential house in India within a period of 3 years after the date on which transfer took place.
Hi
You need take consideration of section 80C.because under section 80C deduction you need keep the property for 5 years.
Otherwise you can sell.
Hi
Yes, you can sell and buy a new property to claim capital gain exemption.
However, deductions claimed under section 80C for repayment of home loan principal amounts shall be reversed and taxable in the year of sale.
No it won't reverse your benefit of 24 and 80C but you can't include the same in your cost for capital gain purpose.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
80C benefit will be reversed if the house property is sold within 5 years from the date of purchase.Sec 24 deduction will not be affected.
Hello,
Yes, you can sell the house property this year and claim the exemption for investment in the new house property.
The principal repayment deduction u/s. 80C taken earlier would be considered income in the year of sale since the house property is being sold within the 5 years limit.
I hope this answer satisfies your requirements.
Regards,
CA Hunny Badlani
