Upgrad LLM

capital gains tax on property sale under distress condition


Sir, 

I am selling my property inherited from my  father who expired intestate and the property is self acquired by my father. Now, I had incurred lot of personal expenditure to repair and to meet personal expenses and availed various  loans from banks etc. 

Now, I realised that it is better to sale the property and come out of debt trap. So, I request you to help me understand the capital gains calculation under these circumstances. As I may not be able buy new property to save on capital gains and if I have to pay tax , then i would not be left with much  balance. 

 

regards and thanking you in advance .

 

venkat s batchu. 

 

 
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CEO

Igf it is a distress sale and you sustain loss you can set off against loss in other losses of property. Under these circumstances there wouldn't be capital gain Tax.

 
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HI, 

   I have also sold my parental property to meet personal needs and credit card payments and other bank loans availed as I am out of occupation. 

   Also I raised a loan of 15 lacs by mortgaging my personal property to acquire a part of my brothers share (due to partition requirements). Now, can i claim the interest paid to the bank as acquisition cost of my ancestal property (additional land apart from my share of land). 

 

Regards. 

venkata s batchu. 

 
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