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Should a 56-year-old investor buy a house to offset LTCG?

T S Khurana |398 Answers |Ask -Follow

Tax Expert - Answered on Nov 05, 2024

A certified management accountant since 1993, T S Khurana is a fellow member of The Institute of Cost Accountants of India. His areas of expertise are income tax, specifically litigation cases, and GST.

Since the last 21 years, he has also been providing expert advice on financial matters, including investments and diversification of funds, and wealth building in the long term to his clients.
He believes that investment in real estate is the safest way for better returns and wealth generation over a period of time.

A former chairman of the Chandigarh Chapter of Institute of Cost Accountants of India, T S Khurana has also served as member of its technical committee.... more

Asked by Anonymous - Sep 28, 2024Hindi

Money

I am 56 yrs old Investor investing in equity and FnO through my account, wife's account and HUF account. This FY all accounts have STCG and LTCG which are quite on the higher side. The usual PPF, Insurance, bought computers, other expenses have been done. Yet the tax outgo is quite high. I and my wife both yet own a residential home. will buying a house offset the LTCG. My wife account has STCG only. Kindly give detailed response. Regards

Ans: 01. Purchase of a Residential house can have effect on your tax liability in case of LTCGs.
02. In case of STCGs deductions u/s 80-C can help reduce tax liability. It seems you have already made tax savings in this account.
Most welcome for any further clarifications. Thanks.

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.

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HI SIR, I AM SENIOR CITIZEN HAVING NO OTHER SOURCE OF INCOME OTHER THAN HOUSE RENT RS 1.20 LAC AND INTERST INCOME FOR RS. 1.20 LAC. TOTAL INCOME WILL NOT EXCEEDS RS. 5 LAC FROM ALL SOURCES (INCLUDING LTCG AND STCG ON MUTUAL FUNDS). MY QUESTION IS THAT LTCG FOR THE CURRENT FY WILL EXCEEDS THRESHHOLD LIMIT OF RS. 1.25 LAC. KINDLY LET ME KNOW WILL I HAVE TO PAY TAX ON LTCG OVER AND ABOVE 1.25 LCS. (TOTAL LTCG AND STCG WILL BE APPROX. 3 LACS). THANKS IN ADVANCE.

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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