I have recently sold my house where I am currently staying and I am expecting payment towards the same within next couple of months. At the same time, I have identified another property for my future residence and I need to make payments for this new property in next fifteen days. However, since I have not received payment for my current house, I donot have enough money to fund my future house.
My question is, can I borrow money from family/friends/other finacial institutions to fund my new house and later repay the borrowed amount when I receive payment against my current property? I am aware that money received from sell of my current property will not attact tax if I purchase anoher house within one year. However, in my case I shall be using this money to repay loan taken to fund my new house. Will the tax exemption be sill valid if I follow this approach?
Any insights are greatly appreciated.