04 February 2008
If Mr.X has two residensial property he sales one property for 1000000/- and buys a new residentialproperty for 3000000/- as on 1/5/2007 and other res.property he sales on 1/5/2008 for 1000000/-and repays the loan which he has brought from bank to buy the new property.(the new property cost is 300000;he pays 1000000 out of sale of his first res. prop.and remaining 2000000 loan fro hdfc.) Can you please tell me that repayment of the loan from sale of second res.prop.will be consider as deduction and no capital gain will be levied. Please reply.
05 February 2008
sir, let me understand your query this way- Mr X owns two residential houses as on 1/5/07 and he sells one of the two on and invests the same in buying a new one costing Rs 30 lakhs by taking a loan from HDFC of Rs 20 lakhs here clarification is required on the following items - for how long a period Mr X was holding the property-what was the cost to him - we can arrive at gain only on getting these figures If the gain is not Long Term,54 excemption is doubtful- minimum 2 yrs needed Again details are required to find out gain from 2 nd property also - there is no excemption just because the proceeds are used to repay another loan pls provide more details for a complete solution
08 February 2008
first property he has bought on 25/08/2004 and he sold it on 1/5/2007 for 100000 and buys the new property on 1/5/2007 for 3000000.the second res property he owns from 25/5/2003 and sells on 25/8/2008 for 1000000/- and repays the loan taken on new property. So the question is the repayment of loan by selling the second proprty ;will it be considered for sec 54. Please reply.
27 February 2008
No it will not be considered U/s 54. Section 54 is attracted only when the whole of the consideration is paid and possession of the house is obtained.
CAclubindia
