02 November 2010
From a perusal of the facts of the case, it appears that the assessee has already sold his old house and planning to buy the new house (ie, he has still not purchased the same). Accordingly, provided the old house sold by the assessee was long term, and the assessee purchases the new house property within two years from the date of transfer of the old house, he will be eligible to claim exemption from Section 54. Whether or not the new house is purchased from the loaned funds is immaterial.
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