I have repaid outstanding housing loan and sold my house. How to show this in my I.T. returns and save Tax.?

Question

I have repaid Rs. 5,60,000/- in which Principle Rs.5,40,000/- and remaining intrest. I sold my house for Rs. 6,85,000/-. I am planning to construct new house in the next financial year. Is the amount received on selling the house becomes part of my Income? Under which Sections I can minimise my Tax burden?

Answer 1

YOur income will come under capital gains. The capital gain if invested in NABARD capital gains deposits you will get exemption. contact me for details.