22 April 2009
Mr. A purchased a flat for rs. 35 lakhs for which he made payment in 2 installments - rs. 17 lakhs through a bank loan and the balance through the proceeds from the sale of a residential house. he eventually bought another house with the balance money, and invested a small part of it in an agriculturral land. the loan got for purchase is still there. the flat was piurchased before the house was sold. the second house was purchaesd after the sale. Can both the houses be shown as investement of sale proceeds for the purpose of capital gains? and how should the loan be treated?
further details:
Sale of House property : 15/2/2007 : Rs. 75 Lakhs
House No. 1: * Construction Agreement for the flat : March 2005 * Loan taken for the flat : March 05: Rs. 17.50 lakhs * Balance amount paid for flat : 20/2/2007 : Rs. 23 lakhs * Possession of Flat taken : 8/5/2006
House No 2: * Payment and Registration : 24/4/2007 : Rs. 36,07,600
Agricultural Land: * Purchase of land : 5/3/2007 : Rs. 16.50 lakhs
23 April 2009
Sale of House property : 15/2/2007 : Rs. 75 Lakhs
House No. 1: * Construction Agreement for the flat : March 2005 * Loan taken for the flat : March 05: Rs. 17.50 lakhs * Balance amount paid for flat : 20/2/2007 : Rs. 23 lakhs * Possession of Flat taken : 8/5/2006
House No 2: * Payment and Registration : 24/4/2007 : Rs. 36,07,600
Agricultural Land: * Purchase of land : 5/3/2007 : Rs. 16.50 lakhs
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