Capital gains

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This query is : Resolved

Dhiraj Harish Gadiyani (Querist)

13 December 2011 Repayment of Housing Loan whether allowed as application of net sale consideration for the purpose of section 54 F
Reply ASAP

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)

13 December 2011 Exemption under Section 54F is available if the assessee has purchased or constructed a residential house property.

Payment of housing loan cannot be said to be invested in residential house property

Dhiraj Harish Gadiyani

Dhiraj Harish Gadiyani (Querist)

13 December 2011 Sir can you give me any case law on this issue

anurag

anurag (Expert)

13 December 2011 The only condition is that the assessee should purchase/build new house. it is nowhere mentioned that the same funds should be use.
Hence in my opinion assessee can take loan purchase a house and claim the benefit of sec 54F.
supporting case laws-
ishar singh chawala v. cit mum
muneer khan v. ito hyd.

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