How to save tax on income from property

Hi

When are you planning to sell the property??

you can not save tax by repayment of home loan but tax savings depends on calculation of capital gain and how much you invested in new property, thus please share old property purchase value with date, sales value with date, new property purchase value with date, your other residential property details

Sir when you purchased the new property. As per Income Tax Act, 1961 if you invest before one year from sale of old property then it is exempt.

It will be exempted if you invest the same.

Hello,

You need not pay the home loan, you can use the money in whatsoever manner you want. Just make sure that your old property should be sold within one year from the date of purchase of the new property.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, FCA, LLB, CERT. FAFP

Hi,

Yes, you can use the sale amount in repayment of loan if the old property is sold within 1 year from the date of purchase of new property.

Please feel free to call revert in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.Com

It will be exempt. You have to claim this exemption under section 54 while filing your return of income.

Assuming both the properties are residential flats and not only land.

Please feel free to call/ revert in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.Com

Further, the new property which you bought should be a ready made property and not underconstruction property.

Yes, in this case, exemption shall be available.

You can sell the property within 1 year of buying the new property in order to avail the exemption provided it is a Long Term Capital Gain.

Hi,

You need not actually repay the home loan of the new house out of the proceeds of the old house. The law presumes that you purchased the new property out of the proceeds of the old property. However, you should have the bought the new property within 1 year prior to the sale of the old property. If you satisfy the 1 year time limit condition, then you can simply claim exemption of the capital gain arising out of the sale of old property.

Regards,

Keerthiga Padmanabhan

M.Com., CA, LL.B

Hello,

No such provision in Income Tax Act.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, FCA, LLB, CERT. FAFP