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
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  • Originally Posted by rahul_capri
    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 ?
    CommentQuote
  • Originally Posted by rahul_capri
    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.
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