26 October 2015
i had sold a property and had capital gains under section 54f.the amount of sales consideration on my part that i need to invest to get tax exemption is 35 lacs which i paid to builder from my account before date of filing the return.THE property that i purchased will be registerred at around value of 50 lacs. i approached bank .they said they will keep 20% margin and rest they can finance. so on 50lacs they can finance me 40 lacs 80%. if i get it done then bank will pay builder 40 lacs. so total payment to builder would be 35 lacs that i paid and 40 lacs that bank paid i.e. 75 lacs and buider will refund me extra 25 lacs which i will use for my house interiors. will i be eligible for capital gains tax exemption or will it be treated as refinancing of capital gains. am i eligible for tax benefit. also bank says that my income shows only income from other sources that get from interest income from my fathers firm.if i get the registry done in my name and get housing loan on my fathers name where i become the co borrower who will get income tax benefit of principal and interest me or my father
27 October 2015
The property should be purchased by the person who wants to avail the capital gain exemption. Mode of payment is irrelevant. purchasing on bank finance is a sufficient to claim exemption.
27 October 2015
THANK YOU SIR SO CAN I TAKE BACK 25 LACS FROM BUILDER BACK AND THEN USE THAT AMOUNT IN ANYWAY EITHER FOR THE PURPOSE OF ALTERATIONS IN MY HOUSE OR AS I LIKE TO USE THAT AMOUNI LIKE AND STILL CLAIM THE EXEMPTION UNDER CAPITAL GAIN. OR SHOULD IASK THE BANK TO FUND ME FOR ALTERATIONS THROUGH A DIFFRERENT LOAN
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