Hi Sreekanth,
This is my situation :
I have a flat for which I have repaid the loan completely which is now rented.
I have a newly constructed home, I got possession in 2016 December for which I have a home loan (Appx 75 L)
I have a residential plot which I am planning to sell off (Appx Rs.70 L). This was bought for Rs. 6.5 L in 2002.
If I sell this residential plot this year, can I exempt the LTCG if I repay the loan of newly constructed house ? I read somewhere on exemption of LTCG if loan repay is done within 3 years of possession of new house. Please clarify
Thanks,
Vinod
1 Answers
Dear Vinod,
As your investment in new house is more than 1 year back-ward, you may not be eligible to claim LTCG exemption.
The said clause is not related to Home loan but -
- The deducted capital gain (from sale of land) becomes taxable if you buy another house (other than the new one) within two years of the transfer of the original asset or construct a new one within three years.
- If the new house is sold within three years, the deduction claimed will become taxable as a long-term gain.
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