My question is with respect to Exemption u/s Section 54 (Applicable to LTCG on sale of house property only).
Situation:
I own a property A for greater than 10 years and hence it comes under Long Term Capital Gain bracket.
I take a partial home loan and purchase another property B today. 6 months from today, I sell property A.
Can I use the money from sale of property A to cover the principle and interest on home loan for property B, without having to be the Long Term Capital Gain Tax?
My confusion is with the statement:
"The new house has to be bought one year before (under-construction property) the transfer of the first house or within two years after the sale. (For an Under construction property or flat , the construction has to be completed within three years of the transfer of the first property.)"
Thank You
Tushar
CAclubindia
