Tax liability on sale of house

POSTED BY Dimple Bindra ON October 2, 2012 2:27 pm ONE COMMENT

I had bought a house in March 2009 for Rs 25 lac as basic price. I spent rs 2.2 lacs for the registry of the same in march 2009. I had taken a loan of Rs 21 lacs for the purchase of the same. I am paying an interest of Rs 2 lac on the loan amount every year. Now I intend to dispose the house for which I am getting an offer of Rs 55 lacs. I have the foll. queries:-

1. I have paid around Rs 6lacs as interest on the loan amount. If I sell the house I have to repay the balance of the loan amount of . What would be my total tax liability.

2. How can I reinvest in the real estate to save on the tax.

 

 

 

 

One reply on this article “Tax liability on sale of house”

  1. As you have completed 3 yrs of house purchase , you can get the benefit of capital gains now .

    1. See your outstanding amount , just because you paid 6 lacs , dont not mean that out of 21 lacs loan , you have paid 6 lacs, you have just paid close to 1-2 lac , I suppose . so your actual outstanding would be close to 19 or 20 lacs, you will have to pay it off ..

    2. Your net profit would be sell price (55 lacs) – indexed cost price of around 23-24 lacs , just guessing , so its 30 lacs . Now you have to buy another residential property of atleast 30 lacs to have NIL TAX !

    Manish

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