Monday, February 22, 2016

Investment in house property need not be sourced from capital gains only for availing of sec. 54F relief

Section 54F does not put any restriction on source of investment in new asset. Therefore, exemption couldn’t be denied on ground that investment was made out of loan and not from sale consideration received on transfer of original capital asset.

Whether it is mandatory for availing of benefit of section 54F that investment in new asset should be entirely sourced from capital gain?