Long Term Capital Gain vs Section 80C

POSTED BY VinManHBK007 ON December 24, 2011 10:38 am COMMENTS (6)

Hello Experts !

I purchased an apartment in 1992 for Rs. 1,75,000 and sold it in 2011 for Rs. 14,00,000.
I have opened a Long Term Capital Gain account with SBI for investing Rs. 14,00,000

On other hand i have a home loan for a residential house for Rs 8000 per month.

Can i claim home loan amount under Sec 80C ?
Would i be pardoned for any tax since i already have invested it into LTCG account and plan to invest in residential house in 2months time?

Please advice if i did right? or any thing i can do in future to have minmum tax.


6 replies on this article “Long Term Capital Gain vs Section 80C”

  1. Dear Sunita, Please read the original query. The money was already deposited in the CGSS account. So my suggestion to invest only gain amount is not there. As simple as that 🙂



    1. Sunita Misra says:

      Dear Ashal,

      Thanks for your quick clarification. I guess I was confused by your statement “You have done the sensible thing by investing the sell amount in the cap. gain scheme account of bank” 🙂


  2. Dear Vinay, Please feel free to ask as many queries you want to.



  3. Vinay Maithani says:

    Thank you Ashal for your quick response and guidance.

  4. Dear Vinay, As you purchased the flat in 1992-93 FY, & sold it in 2011-12, your LTCG calculation ‘ll be like this

    A. Year of purchase = 1992-93
    B. Cost inflation index of A = 223
    C. Year of sell = 2011-2012
    D. CII of C = 785
    E. Original cost of purchase in 1992-93 = 175000
    F. CII adjusted purchase price for year 2011-2012 = 175000*785/223 = 616000 Rs.
    G. Sell Price = 1400000
    H. Long Term capital Gains = G – F = 784000

    You have done the sensible thing by investing the sell amount in the cap. gain scheme account of bank.

    Yes you can claim principal repmt. of existing home loan under section 80C.



    1. Sunita Misra says:

      Dear Ashal,

      I’m little confused. Why do you advise to deposit the entire sale amount of 14L in the capital gains account. I guess only the capital gain amount (7.84L in this example) needs be deposited. Please confirm.

      There is no tax liability on the cost (indexed) that one recovers in a sale transaction, right?

      Thanks and Regards,

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