54f

You have capital gain from sale of assets other then residential house property of Rs. 42 Lakhs.

U/s 54F you have to invest entire sales consideration to get full exemption.

More ever, it is not advisable to take loan while purchasing a Residential House when the Purchase Price is less than the Sales consideration of Old House.

 

Take Loan , but only in a case where you are investing more than the sale value.

In order to avoid capital gain you need to invest entire sale proceeds either in the form of investment in the house property or depositing the amount for 3 years and subsequently using the same within 3 years to purchase house.

Yes u have to invest the entire sale proceed if only and only if you do not have any other residential house to get the exemption u/s 54F

banl loan deduction is not available.

Section 54F says that before one year from the date of sale also is eligible for deduction, now if i want to invest before one year, then, without selling assets, how can i get the money? - from my own fund or from bank loan only. 

Agree with all...

Mahendra : Invest before one year is condition to get exemption of Capital gains which u have derieved in next year.... Suppose

if u have made invest ment in year 1 10Lakhs and

In year 2 if u earn capital gain of 20Lakhs ,

Then that 10Lakhs spend from ur own funds in previous years will also be elegible for capital gain...

Now

If u dont earn capital gain in year 2 then, Investment made in year 1 wont be elegible for capital gain exemption...

So for this purpose in previous year u have to made investment from ur own pocket only....

 

Yes, We have to invest our own fund only if we want to buy residential house one year before. it will be very helpful if Any body can give any case law (specially karnataka court) where court has also agreed on the facts that one to one co relation is not necessary for investing sale proceeds of old property to get 54F benefit?

Investment by borrowed funds also eligible for exemption as condition is to invest the amount of sale consideration.Sale consideration quantifies the amount which is to be invested.No where in the section it is given that money received in sale consideration it self need to be invested? What if sale consideratio is in kind?