My client has sold one of his residence for Rs. 140,00,000 in the F.Y. 2014-15 and has made a Long Term Capital Gain of Rs. 85,00,000. Now, he bought another single residential house property for Rs. 130,00,000 in the same FY.
He took a Housing Loan of Rs. 105,00,000 for purchase of this property. Now as he has invested more than Rs. 85,00,000 in single residential house property, will his Capital Gain be exempted?
Further if not, why?
What remedies he has for F.Y. 2015-16 to be adopted. Here he has not kept the money in any Capital Gain account in the F.Y. 2014-15 but has invested another Rs. 40,00,000 in the construction of same single Residential house purchased.
Please give elliberated reply to my query.
CAclubindia
