3 questions on my Complex Flat transaction

POSTED BY N3S3K2 ON February 11, 2014 10:37 pm COMMENTS (7)

Overall Property Transaction Query:


1) Flat – Purchased in September 2010. Loan taken ~25 Lakhs. Expected possession – Dec 2014
2) Plots – Purchased in March 2013. Loan taken – 45 Lakhs. Expected possession – April 2014
3) About to purchase ready to move flat. Loan ~1.25Cr

1) Since I bought flat more than 3 years back, when I sell it – will I have to pay Capital Gain taxes ? If yes, even if I use to money to repay 1.25 Cr loan on Ready to Move flat ?
2) Same questions as above for Plots (plots will be less than 3 years though)
3) I will be living in Ready to move property but I bought the other flat earlier. When the interest is to be used for tax exemption, will I be limiting to 1.5 lakhs for RTM flat also? How can i structure my finance better, in case I want to hold both the flats to get max interest benefit in long term

Assume affording the EMI is not an issue at this point. Look forward to knowing your response. Thanks

7 replies on this article “3 questions on my Complex Flat transaction”

  1. ashalanshu says:

    Dear N3S3K2, please go to live in Flat A and rent Flat B to maximize your tax benefit.



  2. N3S3K2 says:

    BTW – I think it could be great post for Jago Investor to write about Long Term and Short Term gains as far as under construction property is concerned. There is a lot of confusion and I couldn’t find any credible source on Internet

  3. N3S3K2 says:

    Oh – That is so good to know upfront. In that case I might hold my flat for longer after possession. Another related question for maintaining two flats:
    1) Flat A – Loan amount is ~25 Lakhs. I expect to get possession by end of this year and put it on rent
    2) Flat B – Loan amount ~1.25 Cr. Immediate possession. I will be staying here

    In the above scenario, I guess I will be at significant loss since interest on flat b is high but I am staying in it – so max interest will be 1.5 Lakhs per person involved in the loan (or is it per property limit 1.5 lakhs) ? My Flat A will have less interest. Any suggestions in such scenario ?


  4. ashalanshu says:

    Dear N3S3K2, as your final payment is still pending for old flat, you are not eligible for LTCG.



  5. N3S3K2 says:

    Dear Anshal / Other members – Please suggest.

    Also, I read somewhere that you can save on capital gains the new house has to be bought one year before the transfer of the first house or within two years after the sale. Since I plan to sell my under construction flat to settle the gains against the loan of my ready to move flat, do I need to sell that flat within a year of purchase of ready to move flat? Thanks

  6. N3S3K2 says:

    Anhal – Thanks for checking. I am yet to pay full money. Only around ~5 lakhs is left. Out of ~25 lakhs, 20 Lakhs is disbursed. Thanks

  7. ashalanshu says:

    Dear N3S3K2, when did you paid all the money for your first flat or still some money is pending?



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