Dear Sir,
I have purchased 1 2bhk Apartment in Ashiana Palm court Raj Nagar Extn. Ghaziabad, amount Rs. 23.00 Lac in 2009, & applied for DDA Flat in 2010, which is allotted by DDA in 2011, now I want to sale my property of Raj Nagar Ashiana palm court in Rs. 35lacs & I am paying Interest for DDA Flat in Rohini.
Kindly suggest me for my tax liability, if I have to pay tax on profit of sold property in ghaziabad Raj Nagar how much Rate of Tax on this profit I have to pay & shopuld I claim tax rebate for my new Flate alloted in Rhini Delhi by DDA

Admin’s Response:

The profit on sale of Ghaziabad property will come under the short term capital gain since you had it for less then three years. It will be computed with your other income and taxed as per the tax slab applicable in your case. You can claim interest paid on housing loan as per the provisions of Section 24(b) upto an amount of Rs. 1.50 lacs and deduction u/s 80 C for repayment of principal amount on the said loan.