9) Profit on Sale of Property –

Profit gained on the sale of property is exempted from tax. Long-term (3 years and above) capital profits, including – equities, buildings, houses, bank deposit and real estate, are not taxable, only if they are sold by a recognized stock exchange and Securities Transaction Tax (STT). This is covered under Section 54 of the IT Act. This section covers only individuals and not Hindu Undivided Family. Only residential houses and apartments are exempted from tax and not commercial ones.

10) Repairs and Maintenance of Houses –

Section 80C does not provide for exemptions of the principal amount meant for reconstructions, repairs and renewals of houses. This section allows only for buying or constructing a new home. Repairs and maintenance of houses and homes are also exempted from taxes. Section 24(b) of the IT Act covers Home Loans for the reconstruction, renewal and repair of existing houses. A maximum of 30,000 worth of tax deduction is allowed through this section. This deduction is meant for residential abodes only.