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Capital Gain

Pankaj Arora (Learner) (3134 Points)

08 October 2018

HI...

PLEASE ANSWER BELOW MENTIONED QUERY:-

MR RAM HAD LONG TERM CAPITAL GAIN OF RS 25 LAKH ON SALE OF HOUSE PROPERTY.

HE PURCHASED ANOTHER PROPERTY WITHIN ONE FOR RS 81 LAKH BUT HE AVAILED LOAN OF RS 70 LAKH TO PURCHASE THIS PROPERTY.

PLEASE LET ME KNOW IS IT CLEAR FROM ABOVE THAT ASSESSEE DIDN'T INVEST ENTIRE CAPITAL GAIN.

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2 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178099 Points)
Replied 08 October 2018

For capital gains exemption u/s. 54, new house property should have been purchased by assessee within stipulated time, may be by investing own fund/same proceeds or borrowed money. Here the condition got satisfied, so he can claim full exemption of 25L LTCG.

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aradhana upadhyay (151 Points)
Replied 08 October 2018

For claiming exemption under Sec 54, condition is just that he should have invested that capital gains amount in one house property, it does not say anything about the borrowed money or your own money. So I think capital gains exemption is still available.