Hello,
You guys are doing an amaing job. I am following your blog since an year or so and have learned lots of new things. This is my first query on this forum.
I have sold my row house for Rs. 53 Lacs just last week. I had bought it in year 2007-08 for Rs. 36 Lacs. I had taken home loan of Rs. 30 Lacs which have been closed now. I paid around Rs. 11 Lacs towards the home loan interest. So effectively, my net profit is not that much. Somewhere you had mentioned that this home loan and interest paid does not matter in the capital gains calculation. But I still want to mention it.
I tried to calculate Capital Gain using the formula given in one of your articles. Per it, my indexed Purchased Price is coming around Rs. 5560000 which is higher than selling price. Am I doing anything wrong?
1) Please tell me how much Capital Gains would be and how much tax I need to pay.
Also, i have opened SBI Capital gains account to avoid payting Capital gains tax and have transfered all the money to this account. I might buy new property within few months.
My questiond here are
2) Do I have to keep all this money (Rs. 53 Lacs) in this capital gains account or just the Capital Gains or Capital Gains Tax amount?
3) Can I close my personal loan of Rs. 4 Lacs from this Rs. 53 Lacs and use rest (i.e. 49 Lacs) for buying the new property?
Hoping to receive replies from you.