IS LONG TERM CAPITAL GAINS AVOIDABLE??

CA Abdul Halim Siddiqui (Partner) (481 Points)

23 March 2009  

MR.A received certain assets & liabilities from his father as per will.( Father expired during previous year ).He gets a flat amounting to Rs.16,00,000/- along with other asset and loan on it from his father.Father has taken the loan for purchasing above flat , but the same flat was registered in the name of Mr.A

NOW ,in the previous year Mr.A has in total 2 flats. 1ST : his owned flat purchased 5 years back & 2ND: flat acquired as per WILL .In the previous year Mr.A sold his owned flat ( purchased 5 years back) .CAN Mr.A can exemption U/S 54 since he is paying the EMI on the loan & flat acquired through will. ( The flat is purchased by father (on loan) 8 months before the sale of flat by Mr.A i.e his son)