Savings on capital gains on shares/stocks when used for home loan

[NewUser]

Hi,

I'm applying for a home loan presently. The salesperson mentioned something about no capital gains tax if the amount after selling the shares is invested in home loan.
Is this true? Is anyone aware of this and/or done this in the past?

 

[CARDBITRAGE]

I don't understand the last line, but thanks for the concern. Yeah it's sort of an emotional purchase as in I'm looking to buy a home to live(the rents in my locality have skyrocketed), so not an investment. Anyway the real estate bubble here is waiting to burst anytime now.

If there was a bubble it should've burst a long time ago. India's real estate market is fueled by unaccounted money. As long as there's that, real estate will thrive. It's also because of the sentiments of Indian people and how we look at real estate as a very safe and stable asset class.
When you account for PPP(purchasing power parity), RE prices in some Indian cities are one of the highest in the world. More than that of cities of major developed economies. What will happen is that real estate prices will not move up significantly going forward and there will be a time correction in the prices. So, 5-10 years down the line RE would've moved by 5-10% from the current prices. See the price trend from the last 5 years, you'll notice that the real estate prices in most parts have gone nowhere.

 

[sxchzy]

I feel the bubble is yet to burst.
Interest rates have peaked out now but what demand we were seeing until now was pent-up demand of income generated in a low interest rate scenario.
Now real wages aren't increasing at the rate, tier 1 cost of living has increased.RBI data also shows savings to GDP is at a 40-year low of 5%.
So if wages don't catch up to the increase in the cost of living or if the cost of living and interest rates don't drop drastically then it is only a matter of time that the debt-fueled purchase of houses will soon end up as npas and in an auction

 

[NewUser]

If there was a bubble it should've burst a long time ago. India's real estate market is fueled by unaccounted money. As long as there's that, real estate will thrive. It's also because of the sentiments of Indian people and how we look at real estate as a very safe and stable asset class.
When you account for PPP(purchasing power parity), RE prices in some Indian cities are one of the highest in the world. More than that of cities of major developed economies. What will happen is that real estate prices will not move up significantly going forward and there will be a time correction in the prices. So, 5-10 years down the line RE would've moved by 5-10% from the current prices. See the price trend from the last 5 years, you'll notice that the real estate prices in most parts have gone nowhere.

Also, the number of properties listed for purchase is significantly higher than the number of units sold. This is even more true for the current and last quarter. According to predictions, if the trend continues for even six more months(number of units sold being significantly lesser than available units), the prices are bound to remain stagnant for the demand to catch up.

That said rents will continue to increase for the given options. Who knows, the higher rents would eventually force the middleman to cough up a fortune to buy a house. Even so, stagnation in house prices is imminent.

 

[Ankur dhanda]

Understanding Section 54: A Guide to Capital Gains Tax Exemptions on Residential Property Sales

The world of finance and taxation can often seem like a labyrinth, especially when it comes to understanding the nuances of the Income Tax Act. However, with the right guide,...

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Decent explanation of the above section 54