I would like to know if there is any provision in the income tax to claim exemption for buying only a plot of land. I don't intend to build a house immediately. I will be taking a loan only to buy the land for building a house .
2007-01-17 21:35:31 · 4 answers · asked by karthik 1 in Business & Finance ➔ Taxes ➔ India
There is no exemption for buying the land. You can get a deduction for the interest paid on the loan.
If you are building a house on the land as your personal residence and you are doing this in the first two years after you bought the land you can deduct the interest as mortgage interest on schedule A. If you don't build within the first two years then the interest would be classified as investment interest and you would get a deduction equal to your investment income with a carry over of any interest paid above your investment income.
2007-01-17 22:40:31 · answer #1 · answered by waggy_33 6 · 0⤊ 0⤋
Do u get exemption if u buy a car,dvd player or plasma tv?? :-) Land is also similar.There will be no exemption on buying a land,plot.U will get exemption if u take a home loan for building a home on that plot u bought.
2007-01-18 17:52:41 · answer #2 · answered by seattle_baron 1 · 0⤊ 0⤋
What $500K exemption? it is not your place so the sale of homestead exclusion would not be conscious. Your father isn't a US man or woman and the valuables isn't placed right here, so US present tax would not be conscious. a million. Your father will owe capital constructive factors tax whilst he sells and could record a tax return. What he does with the money afterwards is a separate project. 2. If he provides the money or the valuables, you will record a sort 3520 because of the fact it incredibly is mroe than $one hundred,000. it is the case whilst you're a US man or woman. If he presents you the valuables and additionally you sell it, you are able to owe the capital constructive factors tax. if the valuables is exterior the U. S., you will record it two times, as quickly as there and as quickly as right here (with a credit for overseas taxes paid). 3. Going to his homestead to settle for the money is moot. there's a sort TDF ninety-22.a million which you would be able to set off in case you have a overseas economic company account with greater beneficial than $10K in it. Failure to record the kind is costly. 4. What you spend the money on is moot. in case you spend $50K on college, positive. Lifetime gaining knowledge of credit remains attainable for you.
2016-12-14 03:48:56 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You will get exemption only the Interest you are paying to your Loan in the financial year.
2007-01-17 22:19:49 · answer #4 · answered by Anonymous · 0⤊ 1⤋