Can I repay home loan by adv money recvd from buyer of my flat on which I have taken home loan.?

Question

Further I have also to buy a bigger flat by the sale proceed + new loan. Will I get long term capital gain benefit. The present flat is more than 36 months old.

Answer 1

Best Answer - Chosen by Voters

Yes you can utilise the advance received as repayment of loan.

In fact if you have some more beyond that to close the loan, your purchaser can avail housing loan from his bank and that bank will settle the balance payment to close the balance loan and you will be given the remaining amount by that purchaser side bank.

I doubt about the long term capital gain and you can check it up with a chartered accountant.

Answer 2

Why not , there is no such problem in doing so. You may do it without any hesitation, but fact remains, you can not sell or transfer the property before clearing the loan amount.For buying bigger flat ,you may contact to some banker. I am not sure whether you will get capital gain or not, for which you will have to contact an income tax advocate, but you will definitely get interest exemption from you tax liabilities upto a certain limit.

Answer 3

Hello ALL, If you are in dire need of loan to start up business, buy a car, pay bills and others and you have been scam several times like me, I'm testify today because Mr Charles Bricks was able to help me out and gave me the loan of £28,500 that I needed to rebuild my supermarket after it got burnt. I promised to tell people about him if he can finally give me the loan, that is why I am broadcast him.
You can contact him now vai email [e-mail]
Please inform him that Mrs Vanessa Kleeberger referred you.

Answer 4

If this is escrow money I wouldn't spend this until the deal closes. What happens if the deal falls through? If you pay up your mortgage, then the deal falls apart, you may need to return the down payment. It's best to hold the money and pay off existing loan out of the proceeds of the sale.

Answer 5

Under section 54 of IT Act, 1961 if you invest LTCGs, from sale of residential house, in purchasing another residential house then the LTCGs are exempt from tax.

HMT