Sec 54

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Neha Agrawal (Querist)
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30 July 2010 Hi! I would like to know that in case of a LTCG from the sale of foreign shares, can the same amount be taken under Sec 54F or Sec 54EC and utilized for:
(i) Repayment of Home Loan (Principal only)taken for residential house.
(ii) Can this be utilized for renovation of the residential house.
Please help in providing a better insight to the situation.

CA Ujjaval Desai

CA Ujjaval Desai (Expert)
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31 July 2010 1)LTCG from Sale of Foreign Shares(Held for more than 12 Months) can be utilised for Repayment of Housing Loan for Residential Purpose as the defition of Long Term Captital Assets u/s 2(42A) defined LTCA as Capital Assets which is not STCA, it does not state the assets should be held in India Only. Hence same can be utilised for Repayment of Princpal on Housing Loan u/s 54F & u/s 54EC

2)The amount cannot be utilised for Renovation of Residential Property, it can only be utilised for Purchase or Construction of House Property.