Long Term Capital Gains on sale of residential plot
1 year ago
I have sold out my residential plot of 200 Sq Yards on 2nd Mar 2023 which was bought in 2003. After considering the indexation , the LTCG comes @ Rs.9.8 Lakhs. I do not have any plans to buy a fresh property to claim the tax exemption. But I bought a residential flat 4 years back in Nov 2018 for which I took home loan from SBI for Rs.40 lakhs. I am regularly paying the EMIs. Now the loan outstanding is 31 lakhs. I got the benefit from PMAY also. During tax filing, I am claiming the tax exemption for Rs. 2 lakhs under section 24 as income from house property (towards interest paid on home loan) My question is whether I can claim the LTCG tax exemption by remitting this LTCG amount of Rs.9.8 Lakhs against my outstanding Home loan amount. Am I eligible for complete tax benefit in this way or not. Kindly suggest.
The exemption from long term capital gains is not available in respect of repayment of a home loan. You can claim deduction under Section 80C for repayment of home loan to the extent of 1.5 lakh rupees every year along with other eligible items.
You have to consult any chartered accountant or Auditor and get suitable guidance in the above matter which deals with payment of tax exemption thereto etc.