Housing loan tax for seller

[Guest]

Dear Experts,

My question is,

im the seller of my home, the buyer took the home loan for buying the home.

1. the home loan providing sector will pay the amount by cheque directly to seller?

2. if they directly given and we use that cheque to get money from bank, in that time seller have to pay any tax?

please im so confused, looking for expert reply and guidance.

[Ganeshan Kalyani]

House is a capital asset. The tax will be calculated under the head income from House Property while filing your income tax return.

[Guest]

Dear Kalyani,

Can you please tell briefly and I'm not aware of TAX details so explain what to do.

[Ganeshan Kalyani]

For better understanding you can read the following article in the link given below:

http://www.livemint.com/Money/1d4TBenT9WUAopsLWMl2GK/wbinaifer-column.html

http://www.firstpost.com/business/money/planning-to-sell-a-property-you-better-know-about-this-change-in-income-tax-rule-1980803.html

AI Summary

Tax treatment of house sale: seller to report tax as income from house property when filing return. Seller's residential property is treated as a capital asset and the tax consequences of its sale should be reported in the seller's income tax return, with tax calculated under the head Income From House Property; no specific procedural guidance on tax liability at the time of receiving or encashing payment by cheque is provided.