Capital gain u/s 54

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This query is : Resolved

Ramya Mohan (Querist)

14 March 2013 A HAS SOLD HIS HOUSE PROPERTY FOR 93 LAKHS AND THE COST OF THE SAME IS 56 LAKHS. THE LONG TERM CAPITAL GAIN IN THIS TRANSACTION THEREBY IS ARRIVED AT 37 LAKHS. A HAS REPAID OUT OF THE TOTAL PROCEEDS A SUM OF 26 LAKHS TOWARDS THE HOUSING LOAN TAKEN.
QUESTIONS ARE:
WHETHER THE REPAYMENT OF LOAN WILL BE CONSIDERED AS AN INVESTMENT AS CONTEMPLATED U/S 54 AND THEREBY CAN HE AVAIL AN EXEMPTION UNDER THIS SECTION.

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

14 March 2013 Repayment of loan not eligible for exemption u/s54. However in your case long term capital gain will not be Rs.37 lakhs. Please provide the date of purchase and date of sale of properties because of long term capital gain depending on the indexation cost to compute indexation cost we required the date of purchase and date of sale of asset. So please provide date of purchase and date of sale to compute the actual long term capital gain based on the indexation cost other you can re-compute your long term capital gain tax based on the indexation.

OM SAI SRI SAI JAI JAI SAI

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