Exemption u/s 54 available if home loan taken

This discussion explores whether a home loan impacts the capital gains tax exemption under Section 54. The user sold a property for Rs 60 lakhs in capital gains and purchased a new one for Rs 70 lakhs, with Rs 30 lakhs financed by a home loan. The core question is whether the home loan portion qualifies for the exemption and if the exemption is limited to Rs 40 lakhs or the full Rs 60 lakhs.