Exemption u/s 54 and interest on borrowed capital
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
11 March 2014
Case :-
An Assessee owns a Self Occupied House Property (SOHP). He sells this house for Long Term Capital Gain of Rs. 20 lakhs. He purchases a new SOHP for Rs. 25 lakhs within one year of such sale.
He finances the entire purchase amount of new SOHP from a Bank Loan.
Query :-
Will he get an exemption u/s 54 ?
And, will he Also get Deduction on Interest on Amount Borrowed for purchase of new SOHP ?
An Assessee owns a Self Occupied House Property (SOHP). He sells this house for Long Term Capital Gain of Rs. 20 lakhs. He purchases a new SOHP for Rs. 25 lakhs within one year of such sale.
He finances the entire purchase amount of new SOHP from a Bank Loan.
Query :-
Will he get an exemption u/s 54 ?
And, will he Also get Deduction on Interest on Amount Borrowed for purchase of new SOHP ?
Nikhil Kaushik
(Expert)
11 March 2014
With regards to section 54, please refer https://www.caclubindia.com/experts/details.asp?mod_id=1649254#792306
this discussion covers both the views. My view is that it is allowed.
with regards to section 24(b) for interest deduction, be assured that it has to be allowed.
this discussion covers both the views. My view is that it is allowed.
with regards to section 24(b) for interest deduction, be assured that it has to be allowed.
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