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HT Estates - - HTESTATES - Harsh Roongta

I had booked a flat in 2012 (in Greater Noida) which is under con­struc­tion even now. From the me­dia I un­der­stand that I can claim re­bate on in­ter­est part only after hav­ing pos­ses­sion of flat. How­ever, there is no in­di­ca­tion about the prin­ci­pal amount. So please let me know if I can claim re­bate on re­pay­ment of prin­ci­pal amount even if the flat is under con­struc­tion.

—Jatin Rawat The amount paid to­wards prin­ci­pal re­pay­ment of hous­ing loan is avail­able as de­duc- tion under section 80C with an up­per limit of ₹ 1.50 lakh. How­ever, it is manda­tory for the con­struc­tion of the prop­erty to be com­pleted in or­der to claim tax ben­e­fit under 80C to­wards the re­pay­ment of prin­ci­pal amount of home loan. Ac­cord­ingly you can not claim tax re­bate on re­pay­ment of prin­ci­pal amount for your flat which is still under con­struc­tion.

My fa­ther is a re­tired per­son in a gov­ern­ment job. He sold his an­ces­tral land re­cently and de­posited the money in his sav­ings ac­count. He has sub­mit­ted Form 15 G with bank Kindly in­form is he li­able to pay tax on sale pro­ceeds of an­ces­tral land. Also is he li­able to pay tax on the pen­sion re­ceived by him and on in­ter­est earned on the amount in his sav­ings ac­count in which he de­posited the money from the sale pro­ceeds of the an­ces­tral land and gets his pen­sion?

Kindly re­solve. —Mani Ram De­tails are not enough to pro­vide all the an­swers. It is as­sumed that the land was bought by the orig­i­nal owner at least three years be­fore the date of sale by your fa­ther and that it’s not agri­cul­tural land. Based on th­ese as­sump­tions the long-term cap­i­tal gains aris­ing on the sale of the land is tax­able.If such land has been bought be­fore April 1, 1981, then the mar­ket value as on April 1, 1981, will be treated as the cost of the an­ces­tral land. If the land was ac­quired after April 1, 1981, then the ac­tual cost in­curred by the orig­i­nal owner will be treated as the cost of the as­set. You can save on the long term cap­i­tal gains tax by in­vest­ing in cap­i­tal gain bonds or in a res­i­den­tial prop­erty.

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