Ltcg exemption

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 March 2014 I have sold a residential land for 42.5 Lakhs and 4 months ago i have purchased a flat for 20 lakhs for which i have taken housing loan... whether this purchase will be allowed for exemption under sectn 54F????

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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10 March 2014 The condition in Section 54F is that the assessee has to invest the sale proceeds in a residential house property.

There is NO condition that the investment CANNOT be made by taking a loan.

So you are eligible for deduction u/s 54F.