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.