Residential property sold in August 2010 for59Lacs(Indexed Cost 14.62/-Rs.), LTCG-44.38 Lacs. Amount of 33Lacs invested in March 2010, in another Residential Property, but 33 Lacs invested by taking a housing loan of 25 Lacs.Does it Qualify under Sec 54?
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Section 54 of the Income Tax Act 1961
Replies (5)
yes it will qualify for sec 54 exemption
plz chck d following link in support of the same
apply a simple logic...in case u are purchasing a new house before the date of transfer of old house..how can u expect to invest the SAME AMOUNT which u received on the sale of old house...?? Its not possible coz u receive the sale inputs after u have already purcahsed a new house..so we reach a conclusion that the reinvested amount need not be the SAME amount received by way of transfer .......
Yes it will qualify for exemption u/s 54.
Certainly qualifies because even if u purchased new HP before sale within one year then also it is allowable. Not compulsarily it need to be the same money.
I would rather play safe and prepay the housing loan so availed .
Anuj
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