02 September 2008
Dear sir, If on selling a house, I use the proceeds of sale to repay loan which i have taken to buy another house 2 years before, Will I be exempt from paying capital gain tax. I know under section 54 i can get exemption if the second house was purcahsed before 1 year of selling of first house. But there it is not talking of re-paying loan amount and may be even house purchased before two years can be treated as benefit for claiming capital gain exemption. Please advice
CAclubindia
