POSTED BY November 14, 2012 6:08 pm COMMENTS (6)ON
I bought a residential plot for 2.5 lakhs in 2005 and constructed house on 2007. For house construction I took Home loan for 13 lakhs and paying the EMI of 15K for the same till now. Now decided to foreclose the loan and sell the house for around 35 lakhs. I dont have plan to reinvest the amount in constructing another house.
1. How much will be the capital gain and income tax for the same?
2. Will the money invested for house construction will be deducted from capital gain?
3. What are the ways to avoid income tax for the same?