16 September 2010
Hi, we have case in Which my client has sold of His LTCA being Residential House generating LTCG of RS 12,00,000 /- and purchased another Residential within 2 years of the sale costing Rs 17,00,000 /-. But he has purchased this House by taking a loan Rs 12,00,000 /- from Bank and Rs 5,00,000 /- from His own fund. Now the Question is how much exemption ( Other Conditions being satisfied) will be available that is Rs 12,00,000 (limited to the amount of Capital gain) or Rs. 5,00,000 /- ( i.e amount from his own pocket.) The section is silent about the Amount of exemption if house is taken on loan. Please advise me about that.
CAclubindia
