Sec 54 exemption

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This query is : Resolved

Sarada Velu (Querist)

02 November 2010 The CG on sale of a house property is Rs.1Cr.

The Assessee wishes to take a housing loan for Rs. 1.5 cr and buy a new property. Will this qualify for Sec 54 exemption?

CA. Aryendra

CA. Aryendra (Expert)

02 November 2010 U/s S.54 The source of funds for the purchase was irrelevant.

Full exemption will be allowed

CIT vs. Dr. P. S. Pasricha (Bombay High Court)

CA. Aryendra

CA. Aryendra (Expert)

02 November 2010 U/s S.54 The source of funds for the purchase was irrelevant.

Full exemption will be allowed

CIT vs. Dr. P. S. Pasricha (Bombay High Court)

CA SIDDHARTH MEHRA

CA SIDDHARTH MEHRA (Expert)

02 November 2010 From a perusal of the facts of the case, it appears that the assessee has already sold his old house and planning to buy the new house (ie, he has still not purchased the same). Accordingly, provided the old house sold by the assessee was long term, and the assessee purchases the new house property within two years from the date of transfer of the old house, he will be eligible to claim exemption from Section 54. Whether or not the new house is purchased from the loaned funds is immaterial.

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