Announcement

Collapse
No announcement yet.

Income tax rules regarding reinvestment

Collapse
X
Collapse

Income tax rules regarding reinvestment

Last updated: March 8 2012
2 | Posts
3364 | Views
  • Time
  • Show
Clear All
new posts

  • Income tax rules regarding reinvestment

    Hi All,
    Can someone please confirm what are the rules regarding taxation of money from a real estate property?
    I need clarification regarding the following points-
    1- What is the long term and short term rate?
    2-Is the paying off of another mortgage tax deductible?

    any other information or link that can help.

    Thanks a lot
    Rahul
  • #2

    #2

    Re : Income tax rules regarding reinvestment

    Originally posted by rahul_capri View Post
    Hi All,
    Can someone please confirm what are the rules regarding taxation of money from a real estate property?
    I need clarification regarding the following points-
    1- What is the long term and short term rate?
    2-Is the paying off of another mortgage tax deductible?

    any other information or link that can help.

    Thanks a lot
    Rahul
    No replies ?

    Comment

    • #3

      #3

      Re : Income tax rules regarding reinvestment

      Originally posted by rahul_capri View Post
      Hi All,
      Can someone please confirm what are the rules regarding taxation of money from a real estate property?
      I need clarification regarding the following points-
      1- What is the long term and short term rate?
      2-Is the paying off of another mortgage tax deductible?

      any other information or link that can help.

      Thanks a lot
      Rahul
      Rahul: Your question is not clear. Do you want to ask about rental income or capital gain from sale of the property? If it's capital gain - then you've to first identify whether the gain is long term (for holding property more than 3 years) or short-term. If it's long term - you'll indexation benefit, rate is 20%, and you'll be eligible to invest in another property to completely save the tax. If it's short term, no such benefit - entire gain will be taxable 30.9% (subject to your slab rate). Yes - you may adjust the gain with capital loss (if any). for capital gain - no mortgatge taxes are deductible.

      Hope it clarifies.

      Comment

      Have any questions or thoughts about this?
      Working...
      X