Can’t claim tax benefit on stamp duty paid on purchase of flat

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I purchased a flat two years ago and now want to sell it. Can I claim tax benefit on the stamp duty paid at the time of registration?

—Sudip PandeyFor computing long-term capital gain (LTCG) on sale of a property held for more than 24 months, the indexed cost of acquisition, indexed cost of improvement and expenses (incurred wholly and exclusively in connection with the transfer) is deducted from the sale proceeds. There are no provisions for concession in stamp duty payable at the time of purchase of another house, upon sale of one. However, capital gains is tax exempt if you buy another house within one year before or two years from the date of transfer. In case of construction, the time limit is three years.

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If I take an education loan from an NBFC for my son’s higher education, can I claim income tax exemption?

—Puneet WadhwaAny individual who takes a loan from any financial institution for pursuing higher education can claim deduction on the interest paid for a period of eight years, beginning from the assessment year in which he has started paying the interest on loan or until the assessment year in which the interest is paid in full, whichever is earlier. Education loans can be taken for self, spouse, children or student for whom you are the legal guardian.

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 I want to sell some mutual fund units to buy a car. How should I compute the capital gains tax?

—Anurag BharadwajCapital gain derived from sale of listed equity shares, units of equity-oriented mutual fund held for a period more than 12 months results in LTCG which are taxable at the rate of 10% + cess + surcharge (if applicable), in excess of `1 lakh, with no indexation benefit. However, if held for 12 months or less, would result in STCG which is taxable at a rate of 15%. Capital gain derived from debt oriented mutual funds held for more than 36 months would result in LTCG which are taxable at rate of 20% and you shall be permitted to avail the benefit of indexation. However, if held for 36 months or less, would result in STCG which is taxable at slab rate.

The writer is director, Nangia Andersen India. Send your queries to [email protected]