When a home loan is availed for buying a house one has to repay the home loan in equal monthly installments (EMI). There are two parts of EMI one is 'Interest' Portion and other is 'Principal' portion.
One cannot avoid tax on short-term capital gains. However, one can claim deductions to lower the tax liability on long-term gains. Section 54 under Indian Income Tax Act, 1961 defines ways to save capital gain subject to fulfillment of certain conditions
As the real estate market boomed all across India in the last decade, buying real estate for investment purposes and selling it later at a higher price has become very common among Indians. Although the number of real estate transaction have increased significantly in the last few years but the understanding of the tax implications on these transactions is largely missing. I am writing down this note to clearly understand the tax liability on real estate transactions.
A new section 194-IA has been inserted in the Income-tax Act, 1961 by the Finance Act, 2013 with effect from 1st June 2013. It provides for withholding tax or tax deduction at source on transfer of immovable property other than agricultural land.