Assesse purchase under construction flat in June 2017 for 48 lakhs. He sells another property in Sep 2018 for 30 lakhs, Capital gains arising from this property is 12 lakhs. Under construction Flat which was purchased in June 2017 is still under construction and assessee is paying the builder as per agreement terms and possession of flat is not received yet. During FY 2018-19 assessee pays Rs.7 lakhs and bank disburses loan of 10 lakhs against flat purchase.
Whether this payment of 7 lakhs by assessee and 10 lakhs by bank will qualify for deduction under section 54.
Kindly Advise.
CAclubindia
