14 May 2013
An Individual/HUF sold a Long Term Capital Asset for lumpsome consideration.Is it necessary that to avail exemption u/s 54,the same sale consideration to be reinvested within the time prescribed or the assessee can reinvest by partly taking loan and partly from the sale consideration received?For eg. Rs.1 crore is the Sale Consideration and the assessee reinvests Rs.50 lakhs from loan taken and remaining Rs.50 lakhs from the sale consideration?
14 May 2013
Firstly whether you have sold a residential house property, if yes, then 100% exemption u/s 54 is available if you invest 100% capital gain. (NOT sale consideration).
Your confusion is for S. 54F which has different terms.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
14 May 2013
Sale consideration 4 crore Less:Cost of Land 3 crore (incl.indexation) Capital Gain 1 Crore now, From sale consideration of Rs.4 crore the assessee repaid the loan of Rs.3.5 crore.To make investment as per sec.54F,he has taken loan of Rs.50 Lakhs and invested Rs.1 Crore (50 Lakhs of Sale Consideration + 50 Lakhs of Loan)to avail exemption u/s 54, can he do so ?
CAclubindia
