Mr. A sold his currect self occupied hsg property and having L.T.C.G. of Rs.10 Lacs. As per section 54 he has to invest the capital gain in buying a new house with in 2 years. Suppose He has bought a new house in 40 lacs and for that he got housing loan of Rs.35 Lacs. So his own contribution for new house is Rs.5 lacs only.
So my query is as per section 54 he has to invest the capital gain of Rs.10 Lacs. however in this case he is contributing Rs.5 Lacs only. The confusion is whether housing loan funding would be treated as our own contribution or not??
CAclubindia
