Taxpayer has LTCG from equity (mutual funds/shares), and also buys his first Home in the same financial year. Date of sale of shares was before the purchase of first home.
Now, the home purchase is financed by 90% home loan.
I read few past cases, and I found that
1) Money is fungible. Same money need not be invested.
2) Funds can be borrowed too. It is not mentioned in 54F, that you can not take home loan. I can share links of the same-
https://timesofindia.indiatimes.com/business/india-business/itat-rules-capital-gain-exemption-available-even-if-housing-loan-is-used-for-new-house/articleshow/70581688.cms
https://taxguru.in/income-tax/section-54f-source-funds-irrelevant-possession-date-purchase-date.html
https://taxguru.in/income-tax/section-54f-exemption-on-investment-out-of-borrowed-funds-in-the-name-of-karta-by-huf-on-renovation-of-existing-unit.html
https://abcaus.in/income-tax/section-54-exemption-not-require-utilisation-of-sale-proceeds-of-original-capital-asset.html
Can LTCG be adjusted against property buy value (1st home), if one has taken home-loan to purchase the house?
CAclubindia
