Sec 54

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Sampreet (Querist)
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26 December 2014 is interest paid on mortgage loan amount and the loan amount was utilized in purchasing new residential property to be allowed as exemption u/s54

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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26 December 2014 Exemption under Section 54 is allowed on amount invested in new property.

If some one sold his property and the consideration is invested into in new property, then only exemption is allowed.

But in case of property purchased from borrowed fund, there would be no exemption allowed under section 54 and therefore, question of allowing of Interest will not arise.