capital gain in case of sale of house property

This query is : Resolved

rajesh (Querist)
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02 August 2010 If a person has purchased one house (A)property on loan and has sold another house (B) in the same year whether capital gain arises on sale of another house (B). Whether he can use proceeds of house (B) for the repayment of loan taken for the house (A) to claim exemption u/s. 54.

Thanks

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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02 August 2010 Yes, it would be available.

There is no restriction in Section 54 that initially the new house purchased should not be acquired from loan proceeds.

I hope your doubt is clear.

srinath

srinath (Expert)
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02 August 2010 ya capital gain arises on the sale of house property B

and if house property A is purchased (not constructed) within one year before the sale of house property B.

and if it is constructed construction should ve been completed after the sale of house property. commencement of construction is of no use

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