Queries about tax on sale of property

Queries about tax on sale of property

We sold a house after 9 years of acquiring it last month. My queries are-

1. Is there any other tax other than capital gains tax on income from sale of property?

2. I calculated the indexation and the costs incurred in acquiring the property and then repairs and we are having a loss after the sale of property. So will there be any capital gains tax payable?

3. If one is incurring a loss after sale of property, then can the amount received from the property be used in other schemes like long term FDs etc instead of having to buy property in exchange of property sold?

4. If I invest a part of money (say 20 lakh) in a 80C 5 year FD of bank, is it that this entire 20 lakh invested will be tax free or will I only get the 1.5 lakh tax benefit on my yearly income? Please clarify this as I don't know why my bank is saying that the entire amount will become tax free.

5. Can husband and wife both claim this 80 C benefit if the property is joint and the amount for the property has been paid off in both husband and wife's accounts?

Thanks a lot

Asked 4 years ago in Capital Gains Tax

1. No

2. No

3. Yes, it can be used anywhere.

4. The sale transaction of property would be tax free. 80C deduction would be available only on 1.5 lacs. Interest earned on FD would be taxable.

5. Yes

Lakshita Bhandari

CA, Mumbai

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1. No

2. No

3. Yes

4. 1.5 lakh. The entire 20 lakh will be tax free but the deduction will be restricted to 1.5 lakh. It's how you advertise the product the lic people will try to tell you to pay a premium of 3.5 lakh as it's exempt under 80C but you know it's limited to 1.5 lakh.

5. Both can invest.

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