Accordinng to provisions of section 54 capital gain arising on sale of residential property and in case of section 54F capital gain on sale of long term asset is exempt if assessee uses such amount for purchase of a new residential house or construction of a house
My question is whether repayment of housing loan taking for contsruction or acquisition of a new house is covered under this section and eligble for claiming exemption..??
Suppose assessee takes a housing loan on 1.1.2014 for construction of a new house of rs20 lacs..he sells a residential house on 1.3.2014 and utilises the proceeds of repayment of the existing housing loan..he completes construction on 1.1.2015 i.e. within 3 years from sale..is he eligible for exemption u/s 54 ??
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