06 April 2015
My relatives having one flat in Bangalore. He wants to sell out. he is having housing loan on that.
Query is that
1. Can he repay housing loan from the consideration likely received and get the long term capital gain tax exemption agisnt housing loan repayment? what is rule position in this regard.
06 April 2015
Repayment of loan is not an expense in connection with the transfer. Therefore, the amount remitted to close housing loan cannot be deducted for determining capital gain tax.
Citation :- Jagadishchandran Vs. CIT (1997) 227 ITR 240 (SC).
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