POSTED BY July 15, 2012 1:03 pm COMMENTS (4)ON
I sold my house (on 31-Mar-2012 i.e. in FY 2011-12) after 3 years but before 5 years. I had taken a home loan on the property and availed 80C benefits during the last three years on the principal payment of the home loan. I closed my loan before selling the property.
I purchased another property (costing more than Rs. 30 lacks) on 30-Apr-2012 i.e. in FY 2012-13. I am aware of all the income tax rules related to capital gains.
As per the information I have, my 80C benefits will be reversed because I have sold the property before 5 years. So my questions are:
1. Is this rule still applicable in the AY 2012-13 and if yes, is there a way to avoid this tax?
2. If the loan is closed before selling the property then also is this tax applcable? (just a guess as my C.A. has advised me that this tax is not required to be paid)
3. As per my information, if you are buying a property costing more than Rs.30 lacks, then it is to be declared to IT department by filling certain form. Is this information still valid. If yes, can I please get the details about the form, how/where should it be submitted, is the price limit for this declaration revised etc.?
Following the forum instructions, I have serached all the existing relevant questions and convinced that I have to pay this tax.
Usually, I file my ITR online but this time I thought that since it is bit complicated (involves multiple property transactions) I decided to do it through a C.A.
He told me that I will not have to pay such tax (reversal of 80C benefits) and also any such form (as per my question 3) is not required to be submitted to IT department.
I am confused now. Can anybody on the forum please help me and possibly send me a link which mentions these rules so that I can forward this to my C.A.
Thanks a million.