Sec 54 Exemption in capital Gain
This query is : Resolved
16 September 2010
Hi,
we have case in Which my client has sold of His LTCA being Residential House generating LTCG of RS 12,00,000 /- and purchased another Residential within 2 years of the sale costing Rs 17,00,000 /-. But he has purchased this House by taking a loan Rs 12,00,000 /- from Bank and Rs 5,00,000 /- from His own fund.
Now the Question is how much exemption ( Other Conditions being satisfied) will be available that is Rs 12,00,000 (limited to the amount of Capital gain) or Rs. 5,00,000 /- ( i.e amount from his own pocket.)
The section is silent about the Amount of exemption if house is taken on loan.
Please advise me about that.
we have case in Which my client has sold of His LTCA being Residential House generating LTCG of RS 12,00,000 /- and purchased another Residential within 2 years of the sale costing Rs 17,00,000 /-. But he has purchased this House by taking a loan Rs 12,00,000 /- from Bank and Rs 5,00,000 /- from His own fund.
Now the Question is how much exemption ( Other Conditions being satisfied) will be available that is Rs 12,00,000 (limited to the amount of Capital gain) or Rs. 5,00,000 /- ( i.e amount from his own pocket.)
The section is silent about the Amount of exemption if house is taken on loan.
Please advise me about that.
16 September 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)
Full exemption will be allowed
CIT vs. Dr. P. S. Pasricha (Bombay High Court)
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