21 February 2011
A person sells a long term capital asset for 2 crores. He constrcucts a residential house costing 2 crores within the stipulated time of three years. He also avails a housing loan of 1.75 crore. Can the benefit of exemption u/s 54F be denied for the reason that he avails a housing loan?
21 February 2011
Following Condition should be met for claiming exemption u/s 54F 1) Person must not avail more then one residential unit other than these residential unit.
2)Whole of net consideration should be invested for construction within period of 3 years of sale or in case of purchase, house can be purchase one year before or 2 years after the sale consideration.
There is no other condition for claiming exemption u/s 54F.
Therefore benefit of exemption u/s 54F can be availed though a person avail housing loan
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