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Repayment of loan eligible for exemption u/s 54

Tax queries 818 views 1 replies

Pawan Mittal

CA Final

711 Points Joined July 2012

Dear Experts

One of our client Mr. X has purchased a house property from Mr. Y one year ago. Mr. X paid the consideration by taking a loan from a ICICI Bank. Just one month ago Mr. X has sold another house property owned by him. If Mr. X uses the money of capital gains to repay the loan taken from ICICI Bank, will he be eligible for the exemption u/s 54?

Replies (1)

Tribhuvan Aditya Singh

Student as well as Self-employed

3710 Points Joined September 2007

according to me, it should be allowed under 54. because current period capital gain can never be practically utilised in purchase of property in past. so i think that repayment of loan of property puchased a year ago should qualify for exemption under 54. ...... other views are also welcome.