income from property sale is used for payment of housing loan (for other property loan)with intrest. Is the principle amt. is consider as a tax benfit for this transaction?
Request you to give best guideline to all experts.
13 July 2010
Hi sandeep As per section 54 LTCG arising from transfer of residential house property is exempt when one has purchased residential house property with in a period of 1 year before the date of transfer...so in ur case if the house property for which ur paying principle is purchased with in the time specified in sec 54...Then definitely amt u paid as repayment of debt is eligible for deduction...
Under Section 54 of the Income Tax Act, 1961 any capital gain arising from the transfer of a residential house property which is a long term asset, is exempt from tax, provided that the assessee has purchased within a period of one year before the transfer (or within two years of the transfer) or has constructed a residential house property within a period of three years after the date of transfer.
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