Dear Sir,
one of my client earned capital during this year by transfer of a long term asset being vacant site. He ask for tax planning. in his case he has purchased a residential property in 2011 for which he has availed Housing loan. he wants to repay the loan and wish to avail the Deduction U/S 54F. All we aware that the condition for claiming deduction U/S 54F is that the amount of capital gain should be invested in purchase/construction of Residential House or invested in infrastructure bonds within specified period. My question is whether the repayment of Housing loan (for the purchase of residential property in 2011) out of Capital gain is eligible for dedution U/S 54F? if so, in what basis is there any case law, Notification etc., please give some input on this issue
CA. R.Kumaresan
CAclubindia
