Capital gains

This query is : Resolved

jayant chandrachud (Querist)
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23 September 2013 1) The assessee has sold his Land in Sept 2013 and has made a capital gain on it.

2) The assessee wishes to avail benefit of exemption U/S 54F for saving the capital gain tax.

3)As per provisions of Sec 54F assessee will have to invest the capital gains in new residential house property before the due date of filing ITR for A.Y. 2014-15 else will have to keep amount deposited under CGAS till the time it is utilised within the stipulated period of two years from the date of transfer.

4)As on the date of transfer of property on which capital gain is made, the assessee has an outstanding loan (LAS) with NBFC more than the amount of capital gains made.

5) Since the NBFC is pressing for the repayment of (LAS)loan, can the assessee use the entire sale proceeds of land for repayment of outstanding loan with NBFC and then take a fresh loan (LAS or LAP) for investing in new house for claiming exemption U/S 54F.Section 54F does not say that the same amount should be used for investment u/s 54F.

Can the experts throw light on the above query?

Thanks...