I have purchased a flat in 2014 at Rs.32,50,000/- market rate for 1300 sq feet, I'm planning to sell the flat for approximately 65,00,000/- Do I need to be paying any income tax and I still have a home loan of 33Lacs of Home loan on this flat and will need to repay the same. Thank you,

Ans: July Budget amendments gives you two options either pay 12.5% LTCG without indexation or pay 20% with indexation for properties acquired before 23rd July 2024. According to my rough working with indexation you may end up with long term capital loss with no tax liability. For calculating precise indexed cost of acquisition of your property kindly contact a tax consultant/CA.

Ans: Based on the information you've provided, you'll likely incur Long-Term Capital Gains (LTCG) tax if you sell your flat in Hyderabad. Here's a breakdown:

Scenario:

Flat purchased in 2014 for Rs. 24,00,000
Expected sale value in 2024: Rs. 65,00,000
Holding period: Over 24 months (Long-Term Capital Gains)
No reinvestment in another residential property
Tax Calculation:

Capital Gain: Rs. 65,00,000 (Sale value) - Rs. 24,00,000 (Purchase value) = Rs. 41,00,000
Indexation benefit: However, you'll likely benefit from indexation, which adjusts the purchase price for inflation, reducing your taxable gains. You can calculate the indexed cost using the Cost Inflation Index (CII) provided by the Income Tax Department for the relevant years.

LTCG Tax Rate: After considering indexation, the remaining capital gain will be taxed at 20%.

Important Note: I cannot provide the exact tax amount due to the complexity of indexation calculations.

Exemption Not Applicable:

Unfortunately, purchasing agricultural land doesn't qualify for exemption under Section 54 of the Income Tax Act, which offers exemption on LTCG from the sale of residential property if the gains are reinvested in a new residential property.

Recommendations:

Consult a Chartered Accountant (CA): A CA can help you calculate the exact LTCG tax liability after considering indexation and other relevant factors. They can also advise on any potential tax-saving strategies that might be applicable in your case.
Explore LTCG Investment Options: While you're not interested in buying another house, consider exploring other options to potentially save on LTCG tax. These include:
Capital Gains Bonds: Investing in specific long-term capital gains bonds issued by the National Housing Bank (NHB) or other government bodies can help you save tax under Section 54EC.
New Residential Property: If you're open to the idea of a new property in the future, remember the exemption under Section 54 applies.
Remember: This is just general information, and it's crucial to consult a professional for personalized tax advice based on your specific situation

Ans: There would not be any capital gains however you will need to maintain this amount under capital gains account scheme for this year to ensure to get the capital gains tax exemption before filing your return of income.

Please take advice from your CA before moving ahead.

Ans: Deductions are available for housing loan, if prescribed conditions are satisfied. Also sale of house property will be subject to long term capital gain tax.