I have purchased a house from capital gain u/s 54 from the old house sold. Now bank is ready to provide me home loan refinance agst the same. 1.Whether I can take the loan.If yes is it violates the conditions of Section 54 2.Whether I can take principle and interest payment exemption u/s 24 and 80C.
01 August 2013
"Now bank is ready to provide me home loan refinance agst the same." . Please replace the word "Refinance" with "Finance" and then "Finance" with "Mortgage Loan" . This is because, you are availing loan for the first time and that too for not financing the house. It may be for other purpose. . Q 1. Whether I can take the loan.If yes is it violates the conditions of Section 54 . " Mortgage" is not treated as "Transfer". In my view, no breach of condition of Section 54 takes place. You may avail loan. . Q 2. Principle and Interest payment exemption u/s 24 and 80C. . In respect of mortgage loan deduction U/s 24 as well as U/s 80C is not available.
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