Property sale Capital gain tax

[chris ivory]

My father bought land for 1 lakh (1991) and sold for 36 lakh (2015)

It was in the name of myself and my brother .

I got 18 lakh and another half gone to my brother account.

I have used this money to settle my home loan in 2015 for 14 lakh (Flat booked in 2012 - Home loan started in 2013)

I have left with 4 lakh remaining which i will use to settle the demand of the builder for the same flat - 2012.

I am in 30% bracket of around 13 lakh income group (paying 1.6 lakh income tax)

- Will my above transaction that i have used land proceeds money towards settling my home loan will qualify for NO capital gain property tax on me?
- I have left with 4 lakh in saving account,can i use it for short term FD in bank,as demand letter from builder is very slow?

AI Summary

Capital Gains Tax Applies on Land Sale; Using Proceeds for Home Loan Doesn't Exempt Tax Liability An individual inquired about capital gains tax implications after selling land, originally purchased by their father, for 36 lakh. The proceeds were split between the individual and their brother. The individual used 14 lakh to settle a home loan for a flat booked in 2012, leaving 4 lakh in savings. They are in a 30% tax bracket and asked if using the proceeds for the home loan would exempt them from capital gains tax and if the remaining amount could be placed in a short-term fixed deposit. The response indicated that capital gains tax would apply to their situation.