16 August 2014
One land was sold by assessee in FY 2013-14. Prior to that before 10 months he purchased one residential flat by obtaining 85% home loan. At the time of calculating capital gain tax exemption u/s 54F was taken for that flat together with expenses incurred for massive furniture and finishing work after getting sale proceeds of land. The balance amt. kept by him. On the date of sale the flat was only residential house.
My query is as the flat is taken thru home loan. Can we avail exemption u/s 54F or not.
16 August 2014
If you have executed separate sale deed for housed and furniture, then sale proceed from furniture is not taxable as it is not capital assets.
If no separate deed is executed, then entire cost is to be taken as cost of house.
16 August 2014
pl. confirm again, the assessee has invested in house prior to sale out of loan. and finally net consideration of sold assets has remained with him. Is this is case that net consideration of only that sold asset should be invested or prior investment can be made and assetssee have hold balance cash with him.
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