STCG on sale of residential plot
Have taken possession of residential flat in feb2014.registered it in same month Selling it in Sep2015.Have taken homeloan for purchase on which still paying monthly EMI( principal+interest)
1. For computation of STCG - what costs to be included in the price of plot
- Plot cost 48L
- registry cost 4.3L
- interest paid on home loan in last 4 years cumulative approx 8 years
2. Will interest paid be taken towards cost till date of possession of plot( Feb 2014) or till the date of actual selling Sep 2015.
Asked 2 years ago in Capital Gains Tax from Mohali, Punjab
1 The cost of acquisition of your flat is the cost of plot and registration cost.
2The interest paid on your home loan upto the date of your acquisition is capitalized and allowed to you under the head "income from house property" and not under STCG.
If the interest has not been claimed against property income then you can claim interest on housing loan as cost of improvement.
In the present case you can take home loan interest till sep 2015. Case laws regarding the same are available.