sec 54 and home loan

This query is : Resolved

paresh zatakia (Querist)
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25 October 2009 Dear Collegues,

A has sold residence and LTCS is Rs.20 lacs.But he has used money for others purposes.Later on within prescribed time he bought new residence with Rs.10 lacs owned fund and Rs.30 lacs home loan.
whta will be his exemption u/s 54?

regards
c.a.paresh zatakia

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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25 October 2009 Bomaby High Court in CIT vs Dr.P.S.Pasricha decided that for claiming benefit under s. 54(1), law does not make it mandatory that the assessee must use the same funds as received from sale. The source of funds is not relevant.