I have book a flat in Oct, 2012 and taken home loan from a bank. Till now, the property is under construction and will be completed by March, 2019. I am paying EMI also. If I surrender the flat and take my money along with home loan interest from builder, who is ready to given me back. After disbursing my loan account, what will be tax impact of balance amount.
1 Answers
Hi,
If you are making any gains in this transaction, it will be treated as Long term capital gains in this case and subject to taxes.
Also, kindly note the below point ;
Your Home Loan EMI consists of Principal and Interest component. The principal component is allowed as deduction under Section 80C. However, if you sell your residential house within five years, you may have to forgo your tax benefits. The entire amount of deduction claimed under Section 80C in prior years on the amount of the principal repayment will be added to the taxable income in the year of sale of the property. Also, no income tax deductions shall be allowed in respect of repayments made during the year of sale of the property.
Kindly note that this rollback is applicable only to deduction(s) claimed under Section 80C. Deductions claimed under Section 24 (b) on interest payable on your home loan will not be withdrawn.
Kindly read :
https://www.relakhs.com/how-to-save-capital-gains-tax-on-sale-of-land-house-property/
https://www.relakhs.com/long-term-capital-gain-exemptions-court-orders/
https://www.relakhs.com/under-construction-house-how-to-claim-tax-deduction-on-home-loan-interest-payments/
Please login or Register to submit your answer