Ltcg indexed cost of acq claim?????????

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Querist : Anonymous

Querist : Anonymous (Querist)

13 November 2013 sale consideration flat sale 45,00,000

less: index cost of acquisiton
300000 * 852/199 12,84,000

less: index cost of improvement
400000*852/426 8,00,000

long term capital gains 24,16,000

so this ltcg is to be invested in new residential flat of cost 24,16,000 to claim sec 54....

now ma question is----- the indexation benefit of nearly 20,00,000 -can it be used to pay housing loan o/s settlement value of
19,00,000.... can it be used ... please tell me

Nikhil Kaushik

Nikhil Kaushik (Expert)
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13 November 2013 once you have invested Rs 24.16 lakhs in accordance with the provisions of Section 54, you are free to do whatever you wish to with the remaining money including repayment of loans.

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CA Pallav Singhania

CA Pallav Singhania (Expert)
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13 November 2013 Section 54 says at least the LTCG amount must be used in purchase or construction of house..
If you are repaying housing loan then it will be counted in it but the remaining money will chargeable to ltcg tax...

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Querist : Anonymous

Querist : Anonymous (Querist)

14 November 2013 so i will invest 24 lakhs to buy new flat and rest the indexation benefit of about 20 lakhs to repay housing loan.... thanks for the advice...

Nikhil Kaushik

Nikhil Kaushik (Expert)
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14 November 2013 You are welcome